The CEO of Lucas Bols N.V. (AMS:BOLS) is Huub L. M. P. Doorne. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Huub L. M. P. Doorne's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Lucas Bols N.V. has a market cap of €178m, and reported total annual CEO compensation of €659k for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at €470k. When we examined a selection of companies with market caps ranging from €90m to €358m, we found the median CEO total compensation was €659k.
So Huub L. M. P. Doorne is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Lucas Bols has changed from year to year.
Is Lucas Bols N.V. Growing?
Over the last three years Lucas Bols N.V. has grown its earnings per share (EPS) by an average of 9.2% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has Lucas Bols N.V. Been A Good Investment?
Given the total loss of 10% over three years, many shareholders in Lucas Bols N.V. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Huub L. M. P. Doorne is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. Shareholders may want to check for free if Lucas Bols insiders are buying or selling shares.
If you want to buy a stock that is better than Lucas Bols, this free list of high return, low debt companies is a great place to look.
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