What We Learned About Biocartis Group's (EBR:BCART) CEO Compensation

Herman Verrelst has been the CEO of Biocartis Group NV (EBR:BCART) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Biocartis Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Biocartis Group

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

Our data indicates that Biocartis Group NV has a market capitalization of €265m, and total annual CEO compensation was reported as €448k for the year to December 2019. We note that's a decrease of 12% compared to last year. Notably, the salary which is €375.0k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from €165m to €659m, we found that the median CEO total compensation was €575k. So it looks like Biocartis Group compensates Herman Verrelst in line with the median for the industry.

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. Biocartis Group is paying a higher share of its remuneration through a salary in comparison to the overall 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

Over the last three years, Biocartis Group NV has shrunk its earnings per share by 7.5% per year. It achieved revenue growth of 14% over the last year.

Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 60% over three years, many shareholders in Biocartis Group NV are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Biocartis Group NV is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs 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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