Shareholders May Be More Conservative With Sipef NV's (EBR:SIP) CEO Compensation For Now

Key Insights

• Sipef to hold its Annual General Meeting on 12th of June
• Total pay for CEO François Van Hoydonck includes US$592.8k salary
• Total compensation is 102% above industry average
• Sipef's total shareholder return over the past three years was 27% while its EPS grew by 73% over the past three years

Under the guidance of CEO François Van Hoydonck, Sipef NV (EBR:SIP) has performed reasonably well 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 12th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Sipef

Comparing Sipef NV's CEO Compensation With The Industry

Our data indicates that Sipef NV has a market capitalization of €587m, and total annual CEO compensation was reported as US$1.9m for the year to December 2023. That's a notable increase of 32% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$593k.

On examining similar-sized companies in the Belgian Food industry with market capitalizations between €368m and €1.5b, we discovered that the median CEO total compensation of that group was US$932k. This suggests that François Van Hoydonck is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	US$593k	US$491k	31%
Other	US$1.3m	US$933k	69%
Total Compensation	US$1.9m	US$1.4m	100%

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. Sipef sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Sipef NV's Growth Numbers

Sipef NV's earnings per share (EPS) grew 73% per year over the last three years. Its revenue is down 16% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Sipef NV Been A Good Investment?

With a total shareholder return of 27% over three years, Sipef NV shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Sipef that investors should be aware of in a dynamic business environment.

Important note: Sipef 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.