Jef Colruyt is the CEO of Etn. Fr. Colruyt NV (EBR:COLR). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jef Colruyt's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Etn. Fr. Colruyt NV has a market cap of €6.8b, and reported total annual CEO compensation of €370k for the year to March 2019. When we examined a selection of companies with market caps ranging from €3.6b to €11b, we found the median CEO total compensation was €1.7m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. It's interesting to note that Etn. Fr. Colruyt allocates a smaller portion of compensation to salary in comparison to the broader industry.
Most shareholders would consider it a positive that Jef Colruyt takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see, below, how CEO compensation at Etn. Fr. Colruyt has changed over time.
Is Etn. Fr. Colruyt NV Growing?
Etn. Fr. Colruyt NV has seen earnings per share (EPS) move positively by an average of 3.2% a year, over the last three years (using a line of best fit). It achieved revenue growth of 4.3% over the last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Etn. Fr. Colruyt NV Been A Good Investment?
With a total shareholder return of 13% over three years, Etn. Fr. Colruyt NV shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Etn. Fr. Colruyt NV is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Jef Colruyt is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. But on this analysis I see no issue with the CEO compensation. Looking into other areas, we've picked out 1 warning sign for Etn. Fr. Colruyt that investors should think about before committing capital to this stock.
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.
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