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Should You Worry About Bee Vectoring Technologies International Inc.'s (CVE:BEE) CEO Pay?

In 2016 Ashish Malik was appointed CEO of Bee Vectoring Technologies International Inc. (CVE:BEE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Bee Vectoring Technologies International

How Does Ashish Malik's Compensation Compare With Similar Sized Companies?

According to our data, Bee Vectoring Technologies International Inc. has a market capitalization of CA$38m, and paid its CEO total annual compensation worth CA$353k over the year to September 2018. Notably, the salary of CA$353k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$267m, and the median CEO total compensation was CA$212k.

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It would therefore appear that Bee Vectoring Technologies International Inc. pays Ashish Malik more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Bee Vectoring Technologies International has changed from year to year.

TSXV:BEE CEO Compensation, March 4th 2020
TSXV:BEE CEO Compensation, March 4th 2020

Is Bee Vectoring Technologies International Inc. Growing?

On average over the last three years, Bee Vectoring Technologies International Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). Its revenue is up 104% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing 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 Bee Vectoring Technologies International Inc. Been A Good Investment?

Boasting a total shareholder return of 62% over three years, Bee Vectoring Technologies International Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Bee Vectoring Technologies International Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bee Vectoring Technologies International (free visualization of insider trades).

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.

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. Thank you for reading.