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How Much Is Blackline Safety's (CVE:BLN) CEO Getting Paid?

This article will reflect on the compensation paid to Cody Slater who has served as CEO of Blackline Safety Corp. (CVE:BLN) since 2011. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Blackline Safety.

See our latest analysis for Blackline Safety

How Does Total Compensation For Cody Slater Compare With Other Companies In The Industry?

According to our data, Blackline Safety Corp. has a market capitalization of CA$299m, and paid its CEO total annual compensation worth CA$251k over the year to October 2019. We note that's an increase of 17% above last year. Notably, the salary which is CA$154.2k, represents most of the total compensation being paid.

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On comparing similar companies from the same industry with market caps ranging from CA$131m to CA$526m, we found that the median CEO total compensation was CA$941k. Accordingly, Blackline Safety pays its CEO under the industry median. What's more, Cody Slater holds CA$8.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

CA$154k

CA$120k

61%

Other

CA$97k

CA$95k

39%

Total Compensation

CA$251k

CA$215k

100%

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Blackline Safety is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

A Look at Blackline Safety Corp.'s Growth Numbers

Over the past three years, Blackline Safety Corp. has seen its earnings per share (EPS) grow by 9.8% per year. In the last year, its revenue is up 47%.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Blackline Safety Corp. Been A Good Investment?

Boasting a total shareholder return of 36% over three years, Blackline Safety Corp. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we noted earlier, Blackline Safety pays its CEO lower than the norm for similar-sized companies belonging to the same industry. In contrast, shareholder returns have been excellent over the past three years, and that’s certainly a promising trend to keep an eye on. So, considering these tasty returns, CEO compensation seems quite appropriate.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Blackline Safety (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Blackline Safety, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.