Jos P. Baeten became the CEO of ASR Nederland N.V. (AMS:ASRNL) in 2009. 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 Jos P. Baeten's Compensation Compare With Similar Sized Companies?
Our data indicates that ASR Nederland N.V. is worth €3.4b, and total annual CEO compensation was reported as €1.1m for the year to December 2019. We note that's an increase of 20% above last year. We think total compensation is more important but we note that the CEO salary is lower, at €752k. When we examined a selection of companies with market caps ranging from €1.8b to €5.8b, we found the median CEO total compensation was €1.9m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. ASR Nederland is paying a higher share of its remuneration through a salary in comparison to the overall industry.
Most shareholders would consider it a positive that Jos P. Baeten takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at ASR Nederland has changed from year to year.
Is ASR Nederland N.V. Growing?
On average over the last three years, ASR Nederland N.V. has seen earnings per share (EPS) move in a favourable direction by 11% each year (using a line of best fit). It achieved revenue growth of 38% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has ASR Nederland N.V. Been A Good Investment?
Since shareholders would have lost about 0.2% over three years, some ASR Nederland N.V. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
ASR Nederland N.V. is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration Jos P. Baeten receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Shifting gears from CEO pay for a second, we've spotted 5 warning signs for ASR Nederland you should be aware of, and 3 of them can't be ignored.
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. 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. Thank you for reading.