In 2006, Peter A. Berdowski was appointed CEO of Royal Boskalis Westminster N.V. (AMS:BOKA). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Royal Boskalis Westminster
How Does Peter A. Berdowski's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Royal Boskalis Westminster N.V. has a market cap of €2.1b, and reported total annual CEO compensation of €1.9m for the year to December 2019. That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at €870k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €924m to €3.0b. The median total CEO compensation was €1.8m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Royal Boskalis Westminster. Speaking on an industry level, we can see that nearly 39% of total compensation represents salary, while the remainder of 61% is other remuneration. So it seems like there isn't a significant difference between Royal Boskalis Westminster and the broader market, in terms of salary allocation in the overall compensation package.
That means Peter A. Berdowski receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Royal Boskalis Westminster has changed over time.
Is Royal Boskalis Westminster N.V. Growing?
On average over the last three years, Royal Boskalis Westminster N.V. has seen earnings per share (EPS) move in a favourable direction by 59% each year (using a line of best fit). Its revenue is up 4.8% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Royal Boskalis Westminster N.V. Been A Good Investment?
Given the total loss of 48% over three years, many shareholders in Royal Boskalis Westminster N.V. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Peter A. Berdowski is paid around what is normal for the leaders of comparable size companies.
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for Royal Boskalis Westminster 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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