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Here's What We Learned About The CEO Pay At BioNeutra Global Corporation (CVE:BGA)

This article will reflect on the compensation paid to Jianhua Zhu who has served as CEO of BioNeutra Global Corporation (CVE:BGA) since 2014. This analysis will also assess whether BioNeutra Global pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for BioNeutra Global

How Does Total Compensation For Jianhua Zhu Compare With Other Companies In The Industry?

According to our data, BioNeutra Global Corporation has a market capitalization of CA$10m, and paid its CEO total annual compensation worth CA$231k over the year to December 2019. That's a notable increase of 23% on last year. In particular, the salary of CA$187.7k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under CA$263m, the reported median total CEO compensation was CA$250k. So it looks like BioNeutra Global compensates Jianhua Zhu in line with the median for the industry.

Component

2019

2018

Proportion (2019)

Salary

CA$188k

CA$179k

81%

Other

CA$43k

CA$9.0k

19%

Total Compensation

CA$231k

CA$188k

100%

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. According to our research, BioNeutra Global has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

BioNeutra Global Corporation's Growth

BioNeutra Global Corporation has reduced its earnings per share by 88% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has BioNeutra Global Corporation Been A Good Investment?

Since shareholders would have lost about 50% over three years, some BioNeutra Global Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, BioNeutra Global Corporation is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for BioNeutra Global that investors should be aware of in a dynamic business environment.

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

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. 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.

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