Xavier Bouckaert became the CEO of Roularta Media Group NV (EBR:ROU) in 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Xavier Bouckaert's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Roularta Media Group NV has a market cap of €150m, and is paying total annual CEO compensation of €100k. (This is based on the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth €100k. We examined companies with market caps from €90m to €359m, and discovered that the median CEO total compensation of that group was €450k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Roularta Media Group has changed over time.
Is Roularta Media Group NV Growing?
On average over the last three years, Roularta Media Group NV has shrunk earnings per share by 75% each year (measured with a line of best fit). In the last year, its revenue is up 19%.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Roularta Media Group NV Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Roularta Media Group NV shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
It appears that Roularta Media Group NV remunerates its CEO below most similar sized companies.
Xavier Bouckaert is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Roularta Media Group (free visualization of insider trades).
Important note: Roularta Media Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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