Yahoo Finance Increases to CEO Compensation Might Be Put On Hold For Now at Sligro Food Group N.V. (AMS:SLIGR)
Key Insights
Sligro Food Group will host its Annual General Meeting on 27th of March
Salary of €624.0k is part of CEO Koen Slippens's total remuneration
The overall pay is 97% above the industry average
Sligro Food Group's three-year loss to shareholders was 39% while its EPS grew by 86% over the past three years
In the past three years, the share price of Sligro Food Group N.V. (AMS:SLIGR) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of March. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Sligro Food Group
How Does Total Compensation For Koen Slippens Compare With Other Companies In The Industry?
According to our data, Sligro Food Group N.V. has a market capitalization of €581m, and paid its CEO total annual compensation worth €1.1m over the year to December 2023. That is, the compensation was roughly the same as last year. We note that the salary of €624.0k makes up a sizeable portion of the total compensation received by the CEO.
For comparison, other companies in the the Netherlands Consumer Retailing industry with market capitalizations ranging between €366m and €1.5b had a median total CEO compensation of €563k. Accordingly, our analysis reveals that Sligro Food Group N.V. pays Koen Slippens north of the industry median. Moreover, Koen Slippens also holds €1.5m worth of Sligro Food Group stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €624k | €603k | 56% |
Other | €485k | €494k | 44% |
Total Compensation | €1.1m | €1.1m | 100% |
Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. Sligro Food Group pays out 56% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Sligro Food Group N.V.'s Growth Numbers
Sligro Food Group N.V.'s earnings per share (EPS) grew 86% per year over the last three years. In the last year, its revenue is up 15%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sligro Food Group N.V. Been A Good Investment?
With a total shareholder return of -39% over three years, Sligro Food Group N.V. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Sligro Food Group that investors should be aware of in a dynamic business environment.
Switching gears from Sligro Food Group, 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.
