Yahoo Finance Should You Be Pleased About The CEO Pay At Bengal Energy Ltd.'s (TSE:BNG)
Chayan Chakrabarty became the CEO of Bengal Energy Ltd. (TSE:BNG) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Bengal Energy
How Does Chayan Chakrabarty's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Bengal Energy Ltd. has a market cap of CA$8.2m, and reported total annual CEO compensation of CA$230k for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth 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$225k.
So Chayan Chakrabarty receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Bengal Energy has changed over time.
Is Bengal Energy Ltd. Growing?
Over the last three years Bengal Energy Ltd. has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). In the last year, its revenue is down 25%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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?
With a three year total loss of 53%, Bengal Energy Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Chayan Chakrabarty is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Bengal Energy shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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