What Can We Learn About Biocartis Group's (EBR:BCART) CEO Compensation?

This article will reflect on the compensation paid to Herman Verrelst who has served as CEO of Biocartis Group NV (EBR:BCART) since 2017. 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 Biocartis Group

How Does Total Compensation For Herman Verrelst Compare With Other Companies In The Industry?

According to our data, Biocartis Group NV has a market capitalization of €260m, and paid its CEO total annual compensation worth €448k over the year to December 2019. We note that's a decrease of 12% compared to last year. In particular, the salary of €375.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between €168m and €673m had a median total CEO compensation of €677k. That is to say, Herman Verrelst is paid under the industry median.

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. According to our research, Biocartis Group has allocated a higher percentage of pay to salary in comparison to the wider 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 Biocartis Group NV's Growth Numbers

Biocartis Group NV has seen its earnings per share (EPS) increase by 2.2% a year over the past three years. It achieved revenue growth of 32% over the last year.

We like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Biocartis Group NV Been A Good Investment?

Given the total shareholder loss of 54% over three years, many shareholders in Biocartis Group NV are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Herman is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company isn't growing and total shareholder returns have been disappointing. We're not critical of the remuneration Herman receives, but it would be good to see improved returns to shareholders before compensation grows too much.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Biocartis Group that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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