Shareholders Will Probably Not Have Any Issues With Ackermans & Van Haaren NV's (EBR:ACKB) CEO Compensation

Key Insights

• Ackermans & Van Haaren will host its Annual General Meeting on 26th of May
• Salary of €677.3k is part of CEO Piet Dejonghe's total remuneration
• Total compensation is similar to the industry average
• Ackermans & Van Haaren's total shareholder return over the past three years was 48% while its EPS grew by 4.7% over the past three years

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CEO Piet Dejonghe has done a decent job of delivering relatively good performance at Ackermans & Van Haaren NV (EBR:ACKB) 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 26th of May. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Ackermans & Van Haaren

How Does Total Compensation For Piet Dejonghe Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ackermans & Van Haaren NV has a market capitalization of €7.5b, and reported total annual CEO compensation of €2.0m for the year to December 2024. That's a fairly small increase of 4.0% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at €677k.

In comparison with other companies in the Belgium Construction industry with market capitalizations ranging from €3.6b to €11b, the reported median CEO total compensation was €2.3m. So it looks like Ackermans & Van Haaren compensates Piet Dejonghe in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€677k	€636k	34%
Other	€1.3m	€1.3m	66%
Total Compensation	€2.0m	€1.9m	100%

On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. Ackermans & Van Haaren 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.

A Look at Ackermans & Van Haaren NV's Growth Numbers

Ackermans & Van Haaren NV's earnings per share (EPS) grew 4.7% per year over the last three years. Its revenue is up 16% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Ackermans & Van Haaren NV Been A Good Investment?

Boasting a total shareholder return of 48% over three years, Ackermans & Van Haaren NV 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...

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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Ackermans & Van Haaren shares (free trial).

Important note: Ackermans & Van Haaren 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.