Is Fluxys Belgium SA (EBR:FLUX) Overpaying Its CEO?

In this article:

Pascal De Buck became the CEO of Fluxys Belgium SA (EBR:FLUX) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

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How Does Pascal De Buck’s Compensation Compare With Similar Sized Companies?

According to our data, Fluxys Belgium SA has a market capitalization of €1.8b, and pays its CEO total annual compensation worth €451k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €223k. We looked at a group of companies with market capitalizations from €872m to €2.8b, and the median CEO compensation was €641k.

That means Pascal De Buck receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Fluxys Belgium has changed from year to year.

ENXTBR:FLUX CEO Compensation January 16th 19
ENXTBR:FLUX CEO Compensation January 16th 19

Is Fluxys Belgium SA Growing?

Fluxys Belgium SA has increased its earnings per share (EPS) by an average of 5.9% a year, over the last three years (using a line of best fit). It achieved revenue growth of 5.0% over the last year.

I’d prefer higher revenue growth, but the modest improvement in EPS is good. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Fluxys Belgium SA Been A Good Investment?

Fluxys Belgium SA has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Pascal De Buck is paid around the same as most CEOs of similar size companies.

The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. Shareholders may want to check for free if Fluxys Belgium insiders are buying or selling shares.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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