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. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Barco
How Does Jan De Witte's Compensation Compare With Similar Sized Companies?
Our data indicates that Barco NV is worth €1.8b, and total annual CEO compensation was reported as €1.6m for the year to December 2019. That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at €600k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from €919m to €2.9b, we found the median CEO total compensation was €742k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Barco. On a sector level, around 62% of total compensation represents salary and 38% is other remuneration. Readers will want to know that Barco pays a modest slice of remuneration through salary, as compared to the wider sector.
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 better assess whether the pay is overly generous by looking into the underlying business performance. The graphic below shows how CEO compensation at Barco has changed from year to year.
Is Barco NV Growing?
On average over the last three years, Barco NV has seen earnings per share (EPS) move in a favourable direction by 70% each year (using a line of best fit). It achieved revenue growth of 5.3% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Barco NV Been A Good Investment?
Most shareholders would probably be pleased with Barco NV for providing a total return of 62% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.