Yahoo Finance Is KBC Group NV's (EBR:KBC) CEO Being Overpaid?
In 2012 Johan Thijs was appointed CEO of KBC Group NV (EBR:KBC). First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for KBC Group
How Does Johan Thijs's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that KBC Group NV has a market cap of €27b, and is paying total annual CEO compensation of €2.3m. (This is based on the year to December 2018). That's just a smallish increase of 4.6% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.2m. When we examined a group of companies with market caps over €7.2b, we found that their median CEO total compensation was €1.3m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
As you can see, Johan Thijs is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean KBC Group NV is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at KBC Group has changed over time.
Is KBC Group NV Growing?
Over the last three years KBC Group NV has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). Its revenue is down -3.9% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has KBC Group NV Been A Good Investment?
Most shareholders would probably be pleased with KBC Group NV for providing a total return of 44% over three years. 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...
We compared the total CEO remuneration paid by KBC Group NV, and compared it to remuneration at a group of other large companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling KBC Group 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.
