In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2016 Eric Rondolat was appointed CEO of Signify N.V. (AMS:LIGHT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Signify
How Does Eric Rondolat's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Signify N.V. has a market cap of €3.1b, and is paying total annual CEO compensation of €2.6m. (This figure is for the year to December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at €850k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €1.8b to €5.7b. The median total CEO compensation was €2.0m.
So Eric Rondolat is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Signify has changed from year to year.
Is Signify N.V. Growing?
Signify N.V. has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -6.5%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Signify N.V. Been A Good Investment?
Signify N.V. has served shareholders reasonably well, with a total return of 27% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Remuneration for Eric Rondolat is close enough to the median pay for a CEO of a similar sized company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Signify shares (free trial).