Philip van Blanken is the CEO of Novisource N.V. (AMS:NOVI). 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Novisource
How Does Philip van Blanken's Compensation Compare With Similar Sized Companies?
According to our data, Novisource N.V. has a market capitalization of €15m, and pays its CEO total annual compensation worth €321k. (This number is for the twelve months until December 2017). Notably, the salary of €321k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below €179m. The median CEO total compensation in that group is €510k.
A first glance this seems like a real positive for shareholders, since Philip van Blanken is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Novisource has changed from year to year.
Is Novisource N.V. Growing?
Over the last three years Novisource N.V. has grown its earnings per share (EPS) by an average of 74% per year (using a line of best fit). Its revenue is down -15% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Novisource N.V. Been A Good Investment?
With a three year total loss of 49%, Novisource N.V. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It looks like Novisource N.V. pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we don't think, Philip van Blanken is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.