Taco Tammo de Groot has been the CEO of Vastned Retail N.V. (AMS:VASTN) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
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How Does Taco Tammo de Groot's Compensation Compare With Similar Sized Companies?
According to our data, Vastned Retail N.V. has a market capitalization of €533m, and pays its CEO total annual compensation worth €912k. (This figure is for the year to December 2018). That's a notable increase of 11% on last year. While we always look at total compensation first, we note that the salary component is less, at €471k. We looked at a group of companies with market capitalizations from €179m to €716m, and the median CEO total compensation was €789k.
So Taco Tammo de Groot receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Vastned Retail has changed from year to year.
Is Vastned Retail N.V. Growing?
Over the last three years Vastned Retail N.V. has grown its earnings per share (EPS) by an average of 6.7% per year (using a line of best fit). In the last year, its revenue changed by just -0.6%.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Vastned Retail N.V. Been A Good Investment?
Given the total loss of 11% over three years, many shareholders in Vastned Retail N.V. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Taco Tammo de Groot is paid around what is normal the leaders of comparable size companies.
The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. This contrasts with the growth in CEO remuneration. So suffice it to say we don't think the compensation is modest. So you may want to check if insiders are buying Vastned Retail shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.