How Should Investors Feel About Badger Daylighting Ltd.'s (TSE:BAD) CEO Pay?

Paul Vanderberg has been the CEO of Badger Daylighting Ltd. (TSE:BAD) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Badger Daylighting

How Does Paul Vanderberg's Compensation Compare With Similar Sized Companies?

Our data indicates that Badger Daylighting Ltd. is worth CA$1.3b, and total annual CEO compensation was reported as CA$2.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$564k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from CA$529m to CA$2.1b, and discovered that the median CEO total compensation of that group was CA$2.0m.

So Paul Vanderberg receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Badger Daylighting has changed from year to year.

TSX:BAD CEO Compensation, October 15th 2019
TSX:BAD CEO Compensation, October 15th 2019

Is Badger Daylighting Ltd. Growing?

Over the last three years Badger Daylighting Ltd. has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). It achieved revenue growth of 21% over the last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Badger Daylighting Ltd. Been A Good Investment?

Boasting a total shareholder return of 39% over three years, Badger Daylighting Ltd. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Remuneration for Paul Vanderberg is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Badger Daylighting shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.

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