A Look At Bapcor's (ASX:BAP) CEO Remuneration

This article will reflect on the compensation paid to Darryl Abotomey who has served as CEO of Bapcor Limited (ASX:BAP) since 2011. This analysis will also assess whether Bapcor pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Bapcor

How Does Total Compensation For Darryl Abotomey Compare With Other Companies In The Industry?

According to our data, Bapcor Limited has a market capitalization of AU$2.4b, and paid its CEO total annual compensation worth AU$2.8m over the year to June 2020. That's a fairly small increase of 5.1% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.2m.

On examining similar-sized companies in the industry with market capitalizations between AU$1.4b and AU$4.4b, we discovered that the median CEO total compensation of that group was AU$397k. Hence, we can conclude that Darryl Abotomey is remunerated higher than the industry median. What's more, Darryl Abotomey holds AU$10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. In Bapcor's case, non-salary compensation represents a greater slice of total remuneration, 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.

A Look at Bapcor Limited's Growth Numbers

Over the past three years, Bapcor Limited has seen its earnings per share (EPS) grow by 10% per year. In the last year, its revenue is up 13%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bapcor Limited Been A Good Investment?

Boasting a total shareholder return of 42% over three years, Bapcor Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we touched on above, Bapcor Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. Given the strong history of shareholder returns, the shareholders are probably very happy with Darryl's performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Bapcor that investors should look into moving forward.

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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