A Quick Analysis On Intertrust's (AMS:INTER) CEO Salary

Stephanie Miller has been the CEO of Intertrust N.V. (AMS:INTER) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Intertrust

Comparing Intertrust N.V.'s CEO Compensation With the industry

At the time of writing, our data shows that Intertrust N.V. has a market capitalization of €1.3b, and reported total annual CEO compensation of €1.8m for the year to December 2019. We note that's an increase of 47% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €600k.

In comparison with other companies in the industry with market capitalizations ranging from €840m to €2.7b, the reported median CEO total compensation was €1.6m. So it looks like Intertrust compensates Stephanie Miller in line with the median for the industry. Moreover, Stephanie Miller also holds €2.2m worth of Intertrust stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 34% of total compensation represents salary and 66% is other remuneration. Our data reveals that Intertrust allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Intertrust N.V.'s Growth

Over the last three years, Intertrust N.V. has shrunk its earnings per share by 29% per year. It achieved revenue growth of 8.5% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. 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 Intertrust N.V. Been A Good Investment?

Intertrust N.V. has not done too badly by shareholders, with a total return of 0.6%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Intertrust pays its CEO in line with similar-sized companies belonging to the same industry. Intertrust has had a tough time in recent years, with declining EPS growth, and although shareholder returns are stable, they are hardly worth celebrating. This doesn't compare well with CEO compensation, which is close to the industry median. We would stop short of the compensation is inappropriate, but we can't say the executive is underpaid.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Intertrust that investors should be aware of in a dynamic business environment.

Switching gears from Intertrust, 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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