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It would be hard to discount the role that CEO Bryant Riley has played in delivering the impressive results at B. Riley Financial, Inc. (NASDAQ:RILY) recently. Coming up to the next AGM on 27 May 2021, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for B. Riley Financial
Comparing B. Riley Financial, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that B. Riley Financial, Inc. has a market capitalization of US$2.0b, and reported total annual CEO compensation of US$3.7m for the year to December 2020. That's a notable decrease of 24% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.
In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$3.7m. So it looks like B. Riley Financial compensates Bryant Riley in line with the median for the industry. Furthermore, Bryant Riley directly owns US$380m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$600k | US$600k | 16% |
| Other | US$3.1m | US$4.3m | 84% |
| Total Compensation | US$3.7m | US$4.9m | 100% |
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. According to our research, B. Riley Financial has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at B. Riley Financial, Inc.'s Growth Numbers
B. Riley Financial, Inc.'s earnings per share (EPS) grew 540% per year over the last three years. Its revenue is up 228% over the 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has B. Riley Financial, Inc. Been A Good Investment?
Boasting a total shareholder return of 340% over three years, B. Riley Financial, 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.