Here's Why It's Unlikely That Smartphoto Group NV's (EBR:SMAR) CEO Will See A Pay Rise This Year

Key Insights

• Smartphoto Group's Annual General Meeting to take place on 8th of May
• Salary of €425.0k is part of CEO Stef de Corte's total remuneration
• Total compensation is 92% above industry average
• Smartphoto Group's three-year loss to shareholders was 7.7% while its EPS was down 2.9% over the past three years

The results at Smartphoto Group NV (EBR:SMAR) have been quite disappointing recently and CEO Stef de Corte bears some responsibility for this. At the upcoming AGM on 8th of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Smartphoto Group

How Does Total Compensation For Stef de Corte Compare With Other Companies In The Industry?

According to our data, Smartphoto Group NV has a market capitalization of €99m, and paid its CEO total annual compensation worth €549k over the year to December 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is €425.0k, represents most of the total compensation being paid.

For comparison, other companies in the Belgium Commercial Services industry with market capitalizations below €187m, reported a median total CEO compensation of €286k. Accordingly, our analysis reveals that Smartphoto Group NV pays Stef de Corte north of the industry median. Moreover, Stef de Corte also holds €146k worth of Smartphoto Group stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€425k	€405k	77%
Other	€124k	€129k	23%
Total Compensation	€549k	€534k	100%

Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. According to our research, Smartphoto Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Smartphoto Group NV's Growth Numbers

Smartphoto Group NV has reduced its earnings per share by 2.9% a year over the last three years. It achieved revenue growth of 1.6% over the last year.

A lack of EPS improvement is not good to see. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Smartphoto Group NV Been A Good Investment?

With a three year total loss of 7.7% for the shareholders, Smartphoto Group NV would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Smartphoto 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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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.