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Jeroen Tuik became the CEO of Connect Group NV (EBR:CONN) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jeroen Tuik's Compensation Compare With Similar Sized Companies?
Our data indicates that Connect Group NV is worth €42m, and total annual CEO compensation is €295k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €240k. We examined a group of similar sized companies, with market capitalizations of below €177m. The median CEO total compensation in that group is €235k.
That means Jeroen Tuik receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Connect Group, below.
Is Connect Group NV Growing?
On average over the last three years, Connect Group NV has grown earnings per share (EPS) by 126% each year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Connect Group NV Been A Good Investment?
Most shareholders would probably be pleased with Connect Group NV for providing a total return of 136% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Jeroen Tuik is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Connect Group.
If you want to buy a stock that is better than Connect Group, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.