Yahoo Finance Shareholders Will Most Likely Find Sif Holding N.V.'s (AMS:SIFG) CEO Compensation Acceptable
Key Insights
Sif Holding will host its Annual General Meeting on 12th of May
CEO Fred van Beers' total compensation includes salary of €398.9k
The total compensation is similar to the average for the industry
Sif Holding's total shareholder return over the past three years was 33% while its EPS grew by 9.6% over the past three years
Performance at Sif Holding N.V. (AMS:SIFG) has been reasonably good and CEO Fred van Beers has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 12th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for Sif Holding
How Does Total Compensation For Fred van Beers Compare With Other Companies In The Industry?
According to our data, Sif Holding N.V. has a market capitalization of €309m, and paid its CEO total annual compensation worth €785k over the year to December 2022. That's a notable decrease of 8.5% on last year. Notably, the salary which is €398.9k, represents a considerable chunk of the total compensation being paid.
On examining similar-sized companies in the the Netherlands Electrical industry with market capitalizations between €181m and €726m, we discovered that the median CEO total compensation of that group was €705k. This suggests that Sif Holding remunerates its CEO largely in line with the industry average. Furthermore, Fred van Beers directly owns €200k worth of shares in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | €399k | €382k | 51% |
Other | €386k | €476k | 49% |
Total Compensation | €785k | €858k | 100% |
Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. There isn't a significant difference between Sif Holding and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Sif Holding N.V.'s Growth Numbers
Over the past three years, Sif Holding N.V. has seen its earnings per share (EPS) grow by 9.6% per year. It saw its revenue drop 11% over the last year.
We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Sif Holding N.V. Been A Good Investment?
Sif Holding N.V. has generated a total shareholder return of 33% over three years, so most shareholders would be reasonably content. 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...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sif Holding (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
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