Here's What We Learned About The CEO Pay At Oxurion NV (EBR:OXUR)

Patrik De Haes became the CEO of Oxurion NV (EBR:OXUR) in 2008, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Oxurion

Comparing Oxurion NV's CEO Compensation With the industry

Our data indicates that Oxurion NV has a market capitalization of €98m, and total annual CEO compensation was reported as €557k for the year to December 2019. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at €469.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below €169m, we found that the median total CEO compensation was €333k. This suggests that Patrik De Haes is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 65% of total compensation out of all the companies we analyzed, while other remuneration made up 35% of the pie. It's interesting to note that Oxurion pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Oxurion NV's Growth Numbers

Over the last three years, Oxurion NV has shrunk its earnings per share by 4.9% per year. In the last year, its revenue is down 26%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Oxurion NV Been A Good Investment?

Given the total shareholder loss of 17% over three years, many shareholders in Oxurion NV 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...

As we touched on above, Oxurion NV is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. What's equally worrying is that the company isn't growing by our analysis. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Oxurion (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Oxurion, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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