Yahoo Finance Should You Worry About Barco NV’s (EBR:BAR) CEO Pay?
Jan De Witte became the CEO of Barco NV (EBR:BAR) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Barco
How Does Jan De Witte’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Barco NV has a market cap of €1.7b, and is paying total annual CEO compensation of €1.7m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at €600k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €879m to €2.8b. The median total CEO compensation was €422k.
As you can see, Jan De Witte is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Barco 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 a visual representation of the CEO compensation at Barco, below.
Is Barco NV Growing?
Barco NV has increased its earnings per share (EPS) by an average of 112% a year, over the last three years (using a line of best fit). It saw its revenue drop -5.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Barco NV Been A Good Investment?
Boasting a total shareholder return of 126% over three years, Barco NV 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…
We compared total CEO remuneration at Barco NV with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Barco (free visualization of insider trades).
Important note: Barco may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.