In 2012 René Moos was appointed CEO of Basic-Fit N.V. (AMS:BFIT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 René Moos's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Basic-Fit N.V. has a market cap of €1.5b, and is paying total annual CEO compensation of €1.5m. (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 €632k. When we examined a selection of companies with market caps ranging from €897m to €2.9b, we found the median CEO total compensation was €1.6m.
So René Moos is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Basic-Fit has changed over time.
Is Basic-Fit N.V. Growing?
Over the last three years Basic-Fit N.V. has grown its earnings per share (EPS) by an average of 121% per year (using a line of best fit). It achieved revenue growth of 26% over the last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Basic-Fit N.V. Been A Good Investment?
I think that the total shareholder return of 94%, over three years, would leave most Basic-Fit N.V. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for René Moos is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Basic-Fit.
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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