A Look At Ordina's (AMS:ORDI) CEO Remuneration

This article will reflect on the compensation paid to Jo Maes who has served as CEO of Ordina N.V. (AMS:ORDI) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Ordina.

See our latest analysis for Ordina

Comparing Ordina N.V.'s CEO Compensation With the industry

Our data indicates that Ordina N.V. has a market capitalization of €277m, and total annual CEO compensation was reported as €891k for the year to December 2019. That's a notable increase of 19% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €387k.

For comparison, other companies in the same industry with market capitalizations ranging between €166m and €662m had a median total CEO compensation of €590k. Accordingly, our analysis reveals that Ordina N.V. pays Jo Maes north of the industry median. What's more, Jo Maes holds €1.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. In Ordina's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Ordina N.V.'s Growth

Over the past three years, Ordina N.V. has seen its earnings per share (EPS) grow by 83% per year. In the last year, its revenue is up 1.9%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Ordina N.V. Been A Good Investment?

Boasting a total shareholder return of 107% over three years, Ordina N.V. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, Ordina N.V. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Jo's performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Ordina that investors should think about before committing capital to this stock.

Important note: Ordina is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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