In This Article:
Jan De Witte became the CEO of Barco NV (EBR:BAR) in 2016. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Barco
How Does Jan De Witte's Compensation Compare With Similar Sized Companies?
According to our data, Barco NV has a market capitalization of €2.4b, and pays its CEO total annual compensation worth €1.7m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €600k. We looked at a group of companies with market capitalizations from €1.8b to €5.8b, and the median CEO total compensation was €576k.
It would therefore appear that Barco NV pays Jan De Witte more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Barco, below.
Is Barco NV Growing?
Over the last three years Barco NV has grown its earnings per share (EPS) by an average of 92% per year (using a line of best fit). Its revenue is down -3.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Barco NV Been A Good Investment?
Boasting a total shareholder return of 182% over three years, Barco NV has done well by shareholders. 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...
We compared total CEO remuneration at Barco NV with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Barco shares with their own money (free access).