Yahoo Finance Most Shareholders Will Probably Find That The CEO Compensation For Bengal Energy Ltd. (TSE:BNG) Is Reasonable
Key Insights
Bengal Energy's Annual General Meeting to take place on 21st of September
Salary of CA$260.0k is part of CEO Chayan Chakrabarty's total remuneration
The total compensation is similar to the average for the industry
Bengal Energy's total shareholder return over the past three years was 25% while its EPS grew by 30% over the past three years
Performance at Bengal Energy Ltd. (TSE:BNG) has been reasonably good and CEO Chayan Chakrabarty has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21st of September. We present our case of why we think CEO compensation looks fair.
View our latest analysis for Bengal Energy
How Does Total Compensation For Chayan Chakrabarty Compare With Other Companies In The Industry?
According to our data, Bengal Energy Ltd. has a market capitalization of CA$24m, and paid its CEO total annual compensation worth CA$260k over the year to March 2023. That's a modest increase of 6.1% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$260k.
On comparing similar-sized companies in the Canadian Oil and Gas industry with market capitalizations below CA$270m, we found that the median total CEO compensation was CA$269k. So it looks like Bengal Energy compensates Chayan Chakrabarty in line with the median for the industry. Moreover, Chayan Chakrabarty also holds CA$155k worth of Bengal Energy stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$260k | CA$245k | 100% |
Other | - | - | - |
Total Compensation | CA$260k | CA$245k | 100% |
On an industry level, roughly 33% of total compensation represents salary and 67% is other remuneration. On a company level, Bengal Energy prefers to reward its CEO through a salary, opting not to pay Chayan Chakrabarty through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Bengal Energy Ltd.'s Growth Numbers
Bengal Energy Ltd. has seen its earnings per share (EPS) increase by 30% a year over the past three years. Its revenue is down 16% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Bengal Energy Ltd. Been A Good Investment?
Bengal Energy Ltd. has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Bengal Energy rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Bengal Energy (1 is potentially serious!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
