Is TomTom NV's (AMS:TOM2) CEO Paid Enough Relative To Peers?

Harold C. Goddijn has been the CEO of TomTom NV (AMS:TOM2) since 2001. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for TomTom

How Does Harold C. Goddijn's Compensation Compare With Similar Sized Companies?

Our data indicates that TomTom NV is worth €1.7b, and total annual CEO compensation is €1m. That's a notable increase of 38% on last year. We examined companies with market caps from €868m to €2.8b, and discovered that the median CEO compensation of that group was €1m.

So Harold C. Goddijn is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

Is TomTom NV Growing?

TomTom NV has reduced its earnings per share by an average of 96% a year, over the last three years. Its revenue is down -11% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

It could be important to check this free visual depiction of what analysts expect for the future.

Has TomTom NV Been A Good Investment?

Given the total loss of 19% over three years, many shareholders in TomTom NV are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Harold C. Goddijn is close enough to the median pay for a CEO of a similar sized company .

Returns have been disappointing and the company is not growing its earnings per share. This contrasts with the growth in CEO remuneration, in the last year. Few would argue that it's wise for the company to pay any more, before returns improve. Shareholders may want to check for free if TomTom NV insiders are buying or selling shares.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.