What Can We Make Of Bijou Brigitte modische Accessoires' (ETR:BIJ) CEO Compensation?

Roland Werner is the CEO of Bijou Brigitte modische Accessoires Aktiengesellschaft (ETR:BIJ), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Bijou Brigitte modische Accessoires pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Bijou Brigitte modische Accessoires

Comparing Bijou Brigitte modische Accessoires Aktiengesellschaft's CEO Compensation With the industry

According to our data, Bijou Brigitte modische Accessoires Aktiengesellschaft has a market capitalization of €168m, and paid its CEO total annual compensation worth €903k over 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 €526.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between €82m and €330m had a median total CEO compensation of €704k. This suggests that Bijou Brigitte modische Accessoires remunerates its CEO largely in line with the industry average.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that Bijou Brigitte modische Accessoires allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Bijou Brigitte modische Accessoires Aktiengesellschaft's Growth

Over the last three years, Bijou Brigitte modische Accessoires Aktiengesellschaft has shrunk its earnings per share by 22% per year. In the last year, its revenue is down 18%.

The decline in EPS is a bit concerning. 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 Bijou Brigitte modische Accessoires Aktiengesellschaft Been A Good Investment?

Given the total shareholder loss of 50% over three years, many shareholders in Bijou Brigitte modische Accessoires Aktiengesellschaft 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 noted earlier, Bijou Brigitte modische Accessoires pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bijou Brigitte modische Accessoires (free visualization of insider trades).

Important note: Bijou Brigitte modische Accessoires is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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