In 2010 Christian Reinaudo was appointed CEO of Agfa-Gevaert NV (EBR:AGFB). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Christian Reinaudo's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Agfa-Gevaert NV has a market cap of €667m, and reported total annual CEO compensation of €1.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €1.1m. We looked at a group of companies with market capitalizations from €359m to €1.4b, and the median CEO total compensation was €521k.
Thus we can conclude that Christian Reinaudo receives more in total compensation than the median of a group of companies in the same market, and of similar size to Agfa-Gevaert NV. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Agfa-Gevaert, below.
Is Agfa-Gevaert NV Growing?
Agfa-Gevaert NV has reduced its earnings per share by an average of 93% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 3.7%.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Agfa-Gevaert NV Been A Good Investment?
Agfa-Gevaert NV has served shareholders reasonably well, with a total return of 16% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Agfa-Gevaert 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. While shareholder returns are acceptable, they don't delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Agfa-Gevaert (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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