In This Article:
Piet Slikke became the CEO of IMCD N.V. (AMS:IMCD) in 1995. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 IMCD
How Does Piet Slikke's Compensation Compare With Similar Sized Companies?
According to our data, IMCD N.V. has a market capitalization of €3.4b, and pays its CEO total annual compensation worth €1.5m. (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 €580k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €1.8b to €5.8b. The median total CEO compensation was €2.2m.
Most shareholders would consider it a positive that Piet Slikke takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at IMCD has changed from year to year.
Is IMCD N.V. Growing?
Over the last three years IMCD N.V. has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). In the last year, its revenue is up 24%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has IMCD N.V. Been A Good Investment?
I think that the total shareholder return of 78%, over three years, would leave most IMCD N.V. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that IMCD N.V. remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Piet Slikke deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at IMCD.