Jesper Jørgensen has been the CEO of Brøndbyernes IF Fodbold A/S (CPH:BIF) since 2014. 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.
How Does Jesper Jørgensen's Compensation Compare With Similar Sized Companies?
Our data indicates that Brøndbyernes IF Fodbold A/S is worth ø205m, and total annual CEO compensation was reported as ø3.5m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at ø1.5m. We looked at a group of companies with market capitalizations under ø1.3b, and the median CEO total compensation was ø2.5m.
It would therefore appear that Brøndbyernes IF Fodbold A/S pays Jesper Jørgensen more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Brøndbyernes IF Fodbold has changed from year to year.
Is Brøndbyernes IF Fodbold A/S Growing?
Brøndbyernes IF Fodbold A/S has increased its earnings per share (EPS) by an average of 76% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.8%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Brøndbyernes IF Fodbold A/S Been A Good Investment?
Since shareholders would have lost about 9.4% over three years, some Brøndbyernes IF Fodbold A/S shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Brøndbyernes IF Fodbold A/S pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Brøndbyernes IF Fodbold (free visualization of insider trades).
If you want to buy a stock that is better than Brøndbyernes IF Fodbold, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.