Does ageas SA/NV’s (EBR:AGS) CEO Pay Reflect Performance?
In 2009 Bart De Smet was appointed CEO of ageas SA/NV (EBR:AGS). This analysis aims first to contrast CEO compensation with other large companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for ageas
How Does Bart De Smet’s Compensation Compare With Similar Sized Companies?
According to our data, ageas SA/NV has a market capitalization of €8.8b, and pays its CEO total annual compensation worth €2m. We note that’s an increase of 65% above last year. We took a group of companies with market capitalizations over €7.1b, and calculated the median CEO compensation to be €2m.
As you can see, Bart De Smet is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean ageas SA/NV is paying too much. 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, below, how CEO compensation at ageas has changed over time.
Is ageas SA/NV Growing?
Over the last three years ageas SA/NV has grown its earnings per share (EPS) by an average of 5.8% per year. It achieved revenue growth of 1.1% over the last year.
I’d prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has ageas SA/NV Been A Good Investment?
ageas SA/NV has served shareholders reasonably well, with a total return of 26% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We compared the total CEO remuneration paid by ageas SA/NV, and compared it to remuneration at a group of other large companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. Shareholders may want to check for free if ageas SA/NV insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
