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Joep van Beurden became the CEO of Kendrion N.V. (AMS:KENDR) in 2015. 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Kendrion
How Does Joep van Beurden's Compensation Compare With Similar Sized Companies?
According to our data, Kendrion N.V. has a market capitalization of €237m, and pays its CEO total annual compensation worth €784k. (This is based on the year to December 2018). That's just a smallish increase of 1.3% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €491k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €89m to €354m. The median total CEO compensation was €705k.
So Joep van Beurden 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.
You can see, below, how CEO compensation at Kendrion has changed over time.
Is Kendrion N.V. Growing?
Kendrion N.V. has increased its earnings per share (EPS) by an average of 1.7% a year, over the last three years (using a line of best fit). Its revenue is down -6.0% over last year.
I would prefer it if there was revenue growth, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Kendrion N.V. Been A Good Investment?
Given the total loss of 23% over three years, many shareholders in Kendrion N.V. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Joep van Beurden is paid around the same as most CEOs of similar size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kendrion (free visualization of insider trades).