We Think Shareholders Will Probably Be Generous With ING Groep N.V.'s (AMS:INGA) CEO Compensation

Key Insights

• ING Groep will host its Annual General Meeting on 22nd of April
• CEO Steven J. van Rijswijk's total compensation includes salary of €1.78m
• The total compensation is similar to the average for the industry
• ING Groep's EPS grew by 30% over the past three years while total shareholder return over the past three years was 74%

It would be hard to discount the role that CEO Steven J. van Rijswijk has played in delivering the impressive results at ING Groep N.V. (AMS:INGA) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 22nd of April. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for ING Groep

Comparing ING Groep N.V.'s CEO Compensation With The Industry

At the time of writing, our data shows that ING Groep N.V. has a market capitalization of €50b, and reported total annual CEO compensation of €2.6m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is €1.78m, represents most of the total compensation being paid.

On comparing similar companies in the the Netherlands Banks industry with market capitalizations above €7.5b, we found that the median total CEO compensation was €2.7m. This suggests that ING Groep remunerates its CEO largely in line with the industry average. Moreover, Steven J. van Rijswijk also holds €1.4m worth of ING Groep stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€1.8m	€1.8m	68%
Other	€829k	€775k	32%
Total Compensation	€2.6m	€2.6m	100%

Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. Although there is a difference in how total compensation is set, ING Groep more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ING Groep N.V.'s Growth

ING Groep N.V.'s earnings per share (EPS) grew 30% per year over the last three years. Its revenue is down 40% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has ING Groep N.V. Been A Good Investment?

Boasting a total shareholder return of 74% over three years, ING Groep N.V. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for ING Groep that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.