Here's What We Learned About The CEO Pay At KBC Group NV (EBR:KBC)

Johan Thijs has been the CEO of KBC Group NV (EBR:KBC) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether KBC Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for KBC Group

How Does Total Compensation For Johan Thijs Compare With Other Companies In The Industry?

According to our data, KBC Group NV has a market capitalization of €24b, and paid its CEO total annual compensation worth €2.4m over the year to December 2019. That's just a smallish increase of 3.7% on last year. We note that the salary portion, which stands at €1.25m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations over €6.5b , the reported median total CEO compensation was €2.1m. So it looks like KBC Group compensates Johan Thijs in line with the median for the industry.

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. It's interesting to note that KBC Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at KBC Group NV's Growth Numbers

Over the last three years, KBC Group NV has shrunk its earnings per share by 18% per year. Its revenue is down 12% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has KBC Group NV Been A Good Investment?

With a three year total loss of 12% for the shareholders, KBC Group NV would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, KBC Group NV is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for KBC Group that investors should look into moving forward.

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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