Yahoo Finance It's Unlikely That Koninklijke BAM Groep nv's (AMS:BAMNB) CEO Will See A Huge Pay Rise This Year
Key Insights
Koninklijke BAM Groep to hold its Annual General Meeting on 10th of April
CEO Ruud Joosten's total compensation includes salary of €801.0k
Total compensation is 31% above industry average
Koninklijke BAM Groep's total shareholder return over the past three years was 73% while its EPS grew by 104% over the past three years
Under the guidance of CEO Ruud Joosten, Koninklijke BAM Groep nv (AMS:BAMNB) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 10th of April. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Koninklijke BAM Groep
How Does Total Compensation For Ruud Joosten Compare With Other Companies In The Industry?
At the time of writing, our data shows that Koninklijke BAM Groep nv has a market capitalization of €952m, and reported total annual CEO compensation of €2.1m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at €801k.
In comparison with other companies in the the Netherlands Construction industry with market capitalizations ranging from €369m to €1.5b, the reported median CEO total compensation was €1.6m. Accordingly, our analysis reveals that Koninklijke BAM Groep nv pays Ruud Joosten north of the industry median. What's more, Ruud Joosten holds €956k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €801k | €772k | 38% |
Other | €1.3m | €1.3m | 62% |
Total Compensation | €2.1m | €2.1m | 100% |
On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. Koninklijke BAM Groep pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Koninklijke BAM Groep nv's Growth
Koninklijke BAM Groep nv has seen its earnings per share (EPS) increase by 104% a year over the past three years. Its revenue is down 5.3% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Koninklijke BAM Groep nv Been A Good Investment?
Most shareholders would probably be pleased with Koninklijke BAM Groep nv for providing a total return of 73% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Koninklijke BAM Groep you should be aware of, and 1 of them is potentially serious.
Important note: Koninklijke BAM Groep 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. 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.
