Yahoo Finance How Much Did Bengal Energy Ltd.'s (TSE:BNG) CEO Pocket Last Year?
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Chayan Chakrabarty became the CEO of Bengal Energy Ltd. (TSE:BNG) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Bengal Energy
How Does Chayan Chakrabarty's Compensation Compare With Similar Sized Companies?
Our data indicates that Bengal Energy Ltd. is worth CA$11m, and total annual CEO compensation is CA$272k. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at CA$230k. We examined a group of similar sized companies, with market capitalizations of below CA$262m. The median CEO total compensation in that group is CA$120k.
As you can see, Chayan Chakrabarty is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bengal Energy Ltd. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Bengal Energy has changed from year to year.
Is Bengal Energy Ltd. Growing?
Bengal Energy Ltd. has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). Its revenue is up 5.7% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, 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?
Given the total loss of 48% over three years, many shareholders in Bengal Energy Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Bengal Energy Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bengal Energy (free visualization of insider trades).
Important note: Bengal Energy may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
