Key Insights

• BigCommerce Holdings to hold its Annual General Meeting on 16th of May
• CEO Brent Bellm's total compensation includes salary of US$486.5k
• The total compensation is 2,854% higher than the average for the industry
• Over the past three years, BigCommerce Holdings' EPS fell by 6.0% and over the past three years, the total loss to shareholders 83%

BigCommerce Holdings, Inc. (NASDAQ:BIGC) has not performed well recently and CEO Brent Bellm will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 16th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

How Does Total Compensation For Brent Bellm Compare With Other Companies In The Industry?

At the time of writing, our data shows that BigCommerce Holdings, Inc. has a market capitalization of US$514m, and reported total annual CEO compensation of US$4.7m for the year to December 2023. Notably, that's a decrease of 36% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$487k.

On examining similar-sized companies in the American IT industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$158k. Accordingly, our analysis reveals that BigCommerce Holdings, Inc. pays Brent Bellm north of the industry median. What's more, Brent Bellm holds US$17m 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 29% of total compensation out of all the companies we analyzed, while other remuneration made up 71% of the pie. BigCommerce Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

BigCommerce Holdings, Inc.'s Growth

Over the last three years, BigCommerce Holdings, Inc. has shrunk its earnings per share by 6.0% per year. It achieved revenue growth of 12% over the last year.

The decline in EPS is a bit concerning. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BigCommerce Holdings, Inc. Been A Good Investment?

The return of -83% over three years would not have pleased BigCommerce Holdings, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for BigCommerce Holdings that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.