We Take A Look At Why Lotus Bakeries NV's (EBR:LOTB) CEO Has Earned Their Pay Packet

Key Insights

• Lotus Bakeries will host its Annual General Meeting on 12th of May
• Total pay for CEO Jan Marcel Matthieu Boone includes €1.03m salary
• Total compensation is similar to the industry average
• Lotus Bakeries' total shareholder return over the past three years was 123% while its EPS grew by 11% over the past three years

The performance at Lotus Bakeries NV (EBR:LOTB) has been quite strong recently and CEO Jan Marcel Matthieu Boone has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 12th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Lotus Bakeries

How Does Total Compensation For Jan Marcel Matthieu Boone Compare With Other Companies In The Industry?

Our data indicates that Lotus Bakeries NV has a market capitalization of €5.1b, and total annual CEO compensation was reported as €2.3m for the year to December 2022. Notably, that's an increase of 13% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.0m.

In comparison with other companies in the Belgium Food industry with market capitalizations ranging from €3.6b to €11b, the reported median CEO total compensation was €2.0m. From this we gather that Jan Marcel Matthieu Boone is paid around the median for CEOs in the industry.

Component	2022	2021	Proportion (2022)
Salary	€1.0m	€910k	44%
Other	€1.3m	€1.2m	56%
Total Compensation	€2.3m	€2.1m	100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. It's interesting to note that Lotus Bakeries allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Lotus Bakeries NV's Growth Numbers

Lotus Bakeries NV has seen its earnings per share (EPS) increase by 11% a year over the past three years. Its revenue is up 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Lotus Bakeries NV Been A Good Investment?

We think that the total shareholder return of 123%, over three years, would leave most Lotus Bakeries 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 solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

Whatever your view on compensation, you might want to check if insiders are buying or selling Lotus Bakeries shares (free trial).

Important note: Lotus Bakeries 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.