Is Neways Electronics International N.V.'s (AMS:NEWAY) CEO Salary Justified?
Huub W. van der Vrande is the CEO of Neways Electronics International N.V. (AMS:NEWAY). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Neways Electronics International
How Does Huub W. van der Vrande's Compensation Compare With Similar Sized Companies?
Our data indicates that Neways Electronics International N.V. is worth €128m, and total annual CEO compensation was reported as €617k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €318k. We examined a group of similar sized companies, with market capitalizations of below €183m. The median CEO total compensation in that group is €435k.
Thus we can conclude that Huub W. van der Vrande receives more in total compensation than the median of a group of companies in the same market, and of similar size to Neways Electronics International N.V.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Neways Electronics International has changed from year to year.
Is Neways Electronics International N.V. Growing?
Neways Electronics International N.V. has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Neways Electronics International N.V. Been A Good Investment?
Neways Electronics International N.V. has generated a total shareholder return of 31% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared the total CEO remuneration paid by Neways Electronics International N.V., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Neways Electronics International.
If you want to buy a stock that is better than Neways Electronics International, this free list of high return, low debt companies is a great place to look.
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.
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.
