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The results at Beasley Broadcast Group, Inc. (NASDAQ:BBGI) have been quite disappointing recently and CEO Barbara Beasley bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 27 May 2021. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for Beasley Broadcast Group
Comparing Beasley Broadcast Group, Inc.'s CEO Compensation With the industry
Our data indicates that Beasley Broadcast Group, Inc. has a market capitalization of US$79m, and total annual CEO compensation was reported as US$2.0m for the year to December 2020. That's a notable increase of 13% on last year. We note that the salary of US$1.10m makes up a sizeable portion of the total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$690k. Hence, we can conclude that Barbara Beasley is remunerated higher than the industry median. Furthermore, Barbara Beasley directly owns US$3.6m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$1.1m | US$1.0m | 54% |
| Other | US$916k | US$782k | 46% |
| Total Compensation | US$2.0m | US$1.8m | 100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that Beasley Broadcast Group pays out a greater portion of remuneration through salary, compared to the industry. 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.
Beasley Broadcast Group, Inc.'s Growth
Over the last three years, Beasley Broadcast Group, Inc. has shrunk its earnings per share by 120% per year. In the last year, its revenue is down 25%.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Beasley Broadcast Group, Inc. Been A Good Investment?
Few Beasley Broadcast Group, Inc. shareholders would feel satisfied with the return of -71% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.