Does PostNL N.V.'s (AMS:PNL) CEO Pay Compare Well With Peers?
Herna Verhagen has been the CEO of PostNL N.V. (AMS:PNL) since 2012. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for PostNL
How Does Herna Verhagen's Compensation Compare With Similar Sized Companies?
Our data indicates that PostNL N.V. is worth €953m, and total annual CEO compensation was reported as €1.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €625k. When we examined a selection of companies with market caps ranging from €363m to €1.5b, we found the median CEO total compensation was €1.1m.
That means Herna Verhagen receives fairly typical remuneration for the CEO of a company that size. 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 PostNL has changed over time.
Is PostNL N.V. Growing?
Over the last three years PostNL N.V. has shrunk its earnings per share by an average of 35% per year (measured with a line of best fit). In the last year, its revenue is up 1.3%.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has PostNL N.V. Been A Good Investment?
With a three year total loss of 47%, PostNL 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...
Remuneration for Herna Verhagen is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying PostNL shares with their own money (free access).
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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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.
