Yahoo Finance How Much Is BIOREM Inc. (CVE:BRM) Paying Its CEO?
Derek Webb has been the CEO of BIOREM Inc. (CVE:BRM) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for BIOREM
How Does Total Compensation For Derek Webb Compare With Other Companies In The Industry?
At the time of writing, our data shows that BIOREM Inc. has a market capitalization of CA$14m, and reported total annual CEO compensation of CA$244k for the year to December 2019. Notably, that's a decrease of 29% over the year before. Notably, the salary which is CA$235.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below CA$265m, reported a median total CEO compensation of CA$283k. So it looks like BIOREM compensates Derek Webb in line with the median for the industry. Moreover, Derek Webb also holds CA$108k worth of BIOREM stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$235k | CA$235k | 96% |
Other | CA$9.3k | CA$109k | 4% |
Total Compensation | CA$244k | CA$344k | 100% |
Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. BIOREM pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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 BIOREM Inc.'s Growth Numbers
Over the last three years, BIOREM Inc. has shrunk its earnings per share by 3.0% per year. It saw its revenue drop 7.1% over the last year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has BIOREM Inc. Been A Good Investment?
Since shareholders would have lost about 16% over three years, some BIOREM Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Derek receives almost all of their compensation through a salary. As we noted earlier, BIOREM pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for BIOREM that you should be aware of before investing.
Switching gears from BIOREM, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
This article by Simply Wall St is general in nature. 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.
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