In 2010 Henny L. Hilgerdenaar was appointed CEO of Ctac N.V. ( AMS:CTAC ). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Henny L. Hilgerdenaar's Compensation Compare With Similar Sized Companies?
Our data indicates that Ctac N.V. is worth €37m, and total annual CEO compensation is €374k. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at €275k. We took a group of companies with market capitalizations below €179m, and calculated the median CEO total compensation to be €510k.
So Henny L. Hilgerdenaar receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Ctac has changed over time.
Is Ctac N.V. Growing?
Ctac N.V. has reduced its earnings per share by an average of 2.6% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 1.7%.
In the last three years the company has failed to grow earnings per s. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future .
Has Ctac N.V. Been A Good Investment?
Ctac N.V. has not done too badly by shareholders, with a total return of 9.5%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Remuneration for Henny L. Hilgerdenaar is close enough to the median pay for a CEO of a similar sized company .
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We do not think the CEO pay is a problem, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. Whatever your view on compensation, you might want to check if insiders are buying or selling Ctac shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.