A Quick Analysis On Accell Group's (AMS:ACCEL) CEO Compensation

Ton Anbeek became the CEO of Accell Group N.V. (AMS:ACCEL) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Accell Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Accell Group

Comparing Accell Group N.V.'s CEO Compensation With the industry

According to our data, Accell Group N.V. has a market capitalization of €705m, and paid its CEO total annual compensation worth €772k over the year to December 2019. That's a slightly lower by 7.1% over the previous year. Notably, the salary which is €484.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from €336m to €1.3b, the reported median CEO total compensation was €1.5m. This suggests that Ton Anbeek is paid below the industry median. Moreover, Ton Anbeek also holds €900k worth of Accell Group stock directly under their own name.

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. It's interesting to note that Accell Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Accell Group N.V.'s Growth Numbers

Over the past three years, Accell Group N.V. has seen its earnings per share (EPS) grow by 25% per year. It achieved revenue growth of 8.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Accell Group N.V. Been A Good Investment?

Accell Group N.V. has served shareholders reasonably well, with a total return of 17% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As we touched on above, Accell Group N.V. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, EPS growth has been exceptional over the past three years. However, shareholder returns have failed to show the same level of growth. We would wish for better returns (whether dividends or capital gains) but we do admire the solidEPS growth on show here. As a result of these considerations, CEO compensation seems quite appropriate.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Accell Group we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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