Performance at Bigtincan Holdings Limited (ASX:BTH) has been reasonably good and CEO David Keane has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 21 November 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now. See our latest analysis for Bigtincan Holdings Comparing Bigtincan Holdings Limited's CEO Compensation With The Industry According to our data, Bigtincan Holdings Limited has a market capitalization of AU$381m, and paid its CEO total annual compensation worth AU$1.3m over the year to June 2022. We note that's a small decrease of 7.8% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$375k. For comparison, other companies in the same industry with market capitalizations ranging between AU$149m and AU$597m had a median total CEO compensation of AU$1.0m. This suggests that Bigtincan Holdings remunerates its CEO largely in line with the industry average. Furthermore, David Keane directly owns AU$16m worth of shares in the company, implying that they are deeply invested in the company's success. Component 2022 2021 Proportion (2022) Salary AU$375k AU$543k 30% Other AU$876k AU$814k 70% Total Compensation AU$1.3m AU$1.4m 100% Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. It's interesting to note that Bigtincan Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance. ceo-compensation A Look at Bigtincan Holdings Limited's Growth Numbers Bigtincan Holdings Limited has reduced its earnings per share by 27% a year over the last three years. Its revenue is up 146% over the last year. The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings.. Has Bigtincan Holdings Limited Been A Good Investment? Bigtincan Holdings Limited has generated a total shareholder return of 5.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration. To Conclude... The overall company performance has been commendable, however there are still areas for improvement. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth. CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Bigtincan Holdings that investors should look into moving forward. Arguably, business quality is much more important than CEO compensation levels. So check out this freelist of interesting companies that have HIGH return on equity and low debt. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Join A Paid User Research Session You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
This Is Why Bigtincan Holdings Limited's (ASX:BTH) CEO Compensation Looks Appropriate
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