Yahoo Finance Fastned B.V.'s (AMS:FAST) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
Fastned B.V's Annual General Meeting to take place on 6th of June
Salary of €107.0k is part of CEO Michiel Langezaal's total remuneration
Total compensation is 88% below industry average
Over the past three years, Fastned B.V's EPS grew by 4.6% and over the past three years, the total loss to shareholders 66%
The performance at Fastned B.V. (AMS:FAST) has been rather lacklustre of late and shareholders may be wondering what CEO Michiel Langezaal is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 6th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.
See our latest analysis for Fastned B.V
How Does Total Compensation For Michiel Langezaal Compare With Other Companies In The Industry?
According to our data, Fastned B.V. has a market capitalization of €424m, and paid its CEO total annual compensation worth €118k over the year to December 2023. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at €107.0k constitutes the majority of total compensation received by the CEO.
On examining similar-sized companies in the the Netherlands Specialty Retail industry with market capitalizations between €185m and €738m, we discovered that the median CEO total compensation of that group was €958k. This suggests that Michiel Langezaal is paid below the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €107k | €100k | 91% |
Other | €11k | €19k | 9% |
Total Compensation | €118k | €119k | 100% |
Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. Fastned B.V pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Fastned B.V.'s Growth
Fastned B.V. has seen its earnings per share (EPS) increase by 4.6% a year over the past three years. It achieved revenue growth of 68% over the last year.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Fastned B.V. Been A Good Investment?
Few Fastned B.V. shareholders would feel satisfied with the return of -66% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
The loss to shareholders over the past three years is certainly concerning. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
Shareholders may want to check for free if Fastned B.V insiders are buying or selling shares.
Switching gears from Fastned B.V, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.
