Should You Worry About Aegon NV’s (AMS:AGN) CEO Pay Cheque?

Alex Wynaendts has been the CEO of Aegon NV (AMS:AGN) since 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Aegon

How Does Alex Wynaendts’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Aegon NV has a market cap of €10b, and is paying total annual CEO compensation of €4.3m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at €1.3m. When we examined a group of companies with market caps over €7.1b, we found that their median CEO compensation was €3.6m.

That means Alex Wynaendts receives fairly typical remuneration for the CEO of a large company. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.

You can see a visual representation of the CEO compensation at Aegon, below.

ENXTAM:AGN CEO Compensation November 29th 18
ENXTAM:AGN CEO Compensation November 29th 18

Is Aegon NV Growing?

Aegon NV has increased its earnings per share (EPS) by an average of 89% a year, over the last three years Its revenue is down -23% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.

Has Aegon NV Been A Good Investment?

Aegon NV has generated a total shareholder return of 2.2% over three years, so most shareholders wouldn’t be too disappointed. 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…

Alex Wynaendts is paid around the same as most CEOs of large companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if Aegon insiders are buying or selling shares.

Important note: Aegon 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.

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.