We Think Some Shareholders May Hesitate To Increase KBC Group NV's (EBR:KBC) CEO Compensation

Key Insights

• KBC Group's Annual General Meeting to take place on 30th of April
• Salary of €2.21m is part of CEO Johan Thijs's total remuneration
• The overall pay is 58% above the industry average
• KBC Group's total shareholder return over the past three years was 55% while its EPS grew by 11% over the past three years

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CEO Johan Thijs has done a decent job of delivering relatively good performance at KBC Group NV (EBR:KBC) 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 30th of April. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for KBC Group

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

At the time of writing, our data shows that KBC Group NV has a market capitalization of €32b, and reported total annual CEO compensation of €4.1m for the year to December 2024. That's a notable increase of 13% on last year. We note that the salary of €2.21m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Belgium Banks industry with market capitalizations over €7.1b, the reported median total CEO compensation was €2.6m. Accordingly, our analysis reveals that KBC Group NV pays Johan Thijs north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	€2.2m	€1.9m	54%
Other	€1.9m	€1.7m	46%
Total Compensation	€4.1m	€3.6m	100%

On an industry level, roughly 66% of total compensation represents salary and 34% 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.

KBC Group NV's Growth

KBC Group NV's earnings per share (EPS) grew 11% per year over the last three years. It saw its revenue drop 2.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 KBC Group NV Been A Good Investment?

We think that the total shareholder return of 55%, over three years, would leave most KBC Group NV shareholders smiling. 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.

To Conclude...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for KBC Group 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.