Our Take On Ctac's (AMS:CTAC) CEO Salary

Henny L. Hilgerdenaar has been the CEO of Ctac N.V. (AMS:CTAC) since 2010, 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.

View our latest analysis for Ctac

How Does Total Compensation For Henny L. Hilgerdenaar Compare With Other Companies In The Industry?

According to our data, Ctac N.V. has a market capitalization of €33m, and paid its CEO total annual compensation worth €467k over the year to December 2019. That's a fairly small increase of 6.4% over the previous year. We note that the salary portion, which stands at €309.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under €167m, the reported median total CEO compensation was €279k. This suggests that Henny L. Hilgerdenaar is paid more than the median for the industry.

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. Our data reveals that Ctac allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Ctac N.V.'s Growth

Over the last three years, Ctac N.V. has shrunk its earnings per share by 14% per year. In the last year, its revenue is up 1.2%.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Ctac N.V. Been A Good Investment?

Since shareholders would have lost about 17% over three years, some Ctac N.V. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Henny L. is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 4 warning signs for Ctac that investors should look into moving forward.

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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