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Is NV Bekaert SA's (EBR:BEKB) CEO Pay Justified?

Simply Wall St

Matthew Taylor became the CEO of NV Bekaert SA (EBR:BEKB) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for NV Bekaert

How Does Matthew Taylor's Compensation Compare With Similar Sized Companies?

Our data indicates that NV Bekaert SA is worth €1.4b, and total annual CEO compensation is €3.2m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at €802k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €892m to €2.9b. The median total CEO compensation was €696k.

Thus we can conclude that Matthew Taylor receives more in total compensation than the median of a group of companies in the same market, and of similar size to NV Bekaert SA. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at NV Bekaert has changed over time.

ENXTBR:BEKB CEO Compensation, August 12th 2019

Is NV Bekaert SA Growing?

Over the last three years NV Bekaert SA has shrunk its earnings per share by an average of 17% per year (measured with a line of best fit). In the last year, its revenue is up 5.0%.

Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has NV Bekaert SA Been A Good Investment?

Since shareholders would have lost about 34% over three years, some NV Bekaert SA shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by NV Bekaert SA, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Earnings per share have not grown in three years, and the revenue growth fails to impress us.

Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling NV Bekaert (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.