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Is Amsterdam Commodities N.V.'s (AMS:ACOMO) CEO Overpaid Relative To Its Peers?

Simply Wall St

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The CEO of Amsterdam Commodities N.V. (AMS:ACOMO) is Allard Goldschmeding. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Amsterdam Commodities

How Does Allard Goldschmeding's Compensation Compare With Similar Sized Companies?

Our data indicates that Amsterdam Commodities N.V. is worth €433m, and total annual CEO compensation is €710k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €275k. When we examined a selection of companies with market caps ranging from €178m to €713m, we found the median CEO total compensation was €730k.

So Allard Goldschmeding is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Amsterdam Commodities has changed from year to year.

ENXTAM:ACOMO CEO Compensation, July 19th 2019

Is Amsterdam Commodities N.V. Growing?

Amsterdam Commodities N.V. has reduced its earnings per share by an average of 3.3% a year, over the last three years (measured with a line of best fit). Its revenue is down -1.3% over last year.

Few shareholders would be pleased to read that earnings per share are lower over 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 Amsterdam Commodities N.V. Been A Good Investment?

With a three year total loss of 12%, Amsterdam Commodities N.V. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Allard Goldschmeding is paid around the same as most CEOs of similar size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Amsterdam Commodities shares (free trial).

Important note: Amsterdam Commodities 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.