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Is N.V. Nederlandsche Apparatenfabriek Nedap's (AMS:NEDAP) CEO Overpaid Relative To Its Peers?

Simply Wall St

Ruben Wegman is the CEO of N.V. Nederlandsche Apparatenfabriek Nedap (AMS:NEDAP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 N.V. Nederlandsche Apparatenfabriek Nedap

How Does Ruben Wegman's Compensation Compare With Similar Sized Companies?

Our data indicates that N.V. Nederlandsche Apparatenfabriek Nedap is worth €313m, and total annual CEO compensation was reported as €815k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €407k. We looked at a group of companies with market capitalizations from €180m to €719m, and the median CEO total compensation was €784k.

That means Ruben Wegman receives fairly typical remuneration for the CEO of a company that size. 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 N.V. Nederlandsche Apparatenfabriek Nedap has changed from year to year.

ENXTAM:NEDAP CEO Compensation, January 15th 2020

Is N.V. Nederlandsche Apparatenfabriek Nedap Growing?

On average over the last three years, N.V. Nederlandsche Apparatenfabriek Nedap has grown earnings per share (EPS) by 34% each year (using a line of best fit). It saw its revenue drop 1.3% over the last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.

Has N.V. Nederlandsche Apparatenfabriek Nedap Been A Good Investment?

Most shareholders would probably be pleased with N.V. Nederlandsche Apparatenfabriek Nedap for providing a total return of 63% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Remuneration for Ruben Wegman is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling N.V. Nederlandsche Apparatenfabriek Nedap shares (free trial).

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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.