Stock Analysis

Is B.V. Delftsch Aardewerkfabriek "De Porceleyne Fles Anno 1653"'s (AMS:PORF) CEO Overpaid Relative To Its Peers?

ENXTAM:PORF
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Henk Schouten has been the CEO of B.V. Delftsch Aardewerkfabriek "De Porceleyne Fles Anno 1653" (AMS:PORF) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for B.V. Delftsch Aardewerkfabriek De Porceleyne Fles Anno 1653

How Does Henk Schouten's Compensation Compare With Similar Sized Companies?

Our data indicates that B.V. Delftsch Aardewerkfabriek "De Porceleyne Fles Anno 1653" is worth €8.2m, and total annual CEO compensation is €171k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at €145k. We examined a group of similar sized companies, with market capitalizations of below €179m. The median CEO total compensation in that group is €510k.

Most shareholders would consider it a positive that Henk Schouten takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at B.V. Delftsch Aardewerkfabriek De Porceleyne Fles Anno 1653, below.

ENXTAM:PORF CEO Compensation, May 29th 2019
ENXTAM:PORF CEO Compensation, May 29th 2019

Is B.V. Delftsch Aardewerkfabriek "De Porceleyne Fles Anno 1653" Growing?

Over the last three years B.V. Delftsch Aardewerkfabriek "De Porceleyne Fles Anno 1653" has shrunk its earnings per share by an average of 75% per year (measured with a line of best fit). Its revenue is up 14% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has B.V. Delftsch Aardewerkfabriek "De Porceleyne Fles Anno 1653" Been A Good Investment?

With a total shareholder return of 24% over three years, B.V. Delftsch Aardewerkfabriek "De Porceleyne Fles Anno 1653" shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It appears that B.V. Delftsch Aardewerkfabriek "De Porceleyne Fles Anno 1653" remunerates its CEO below most similar sized companies.

Shareholders should note that compensation for Henk Schouten is under the median of a group of similar sized companies. However, the earnings per share are not moving in the right direction, and the returns to shareholders could have been better. There is room for improved company performance, but we don't see the CEO pay as a big issue here. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at B.V. Delftsch Aardewerkfabriek De Porceleyne Fles Anno 1653.

Important note: B.V. Delftsch Aardewerkfabriek De Porceleyne Fles Anno 1653 may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.