Here's Why It's Unlikely That Agfa-Gevaert NV's (EBR:AGFB) CEO Will See A Pay Rise This Year

Key Insights

• Agfa-Gevaert to hold its Annual General Meeting on 13th of May
• CEO Pascal Juery's total compensation includes salary of €780.0k
• Total compensation is 71% above industry average
• Agfa-Gevaert's three-year loss to shareholders was 75% while its EPS was down 1.5% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Agfa-Gevaert NV (EBR:AGFB) recently. At the upcoming AGM on 13th 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Agfa-Gevaert

Comparing Agfa-Gevaert NV's CEO Compensation With The Industry

According to our data, Agfa-Gevaert NV has a market capitalization of €141m, and paid its CEO total annual compensation worth €1.2m over the year to December 2024. That's a fairly small increase of 5.3% over the previous year. Notably, the salary which is €780.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the Belgium Healthcare Services industry with market capitalizations between €88m and €352m, we discovered that the median CEO total compensation of that group was €727k. Accordingly, our analysis reveals that Agfa-Gevaert NV pays Pascal Juery north of the industry median.

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. There isn't a significant difference between Agfa-Gevaert and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Agfa-Gevaert NV's Growth Numbers

Over the last three years, Agfa-Gevaert NV has shrunk its earnings per share by 1.5% per year. Its revenue is down 1.0% over the previous year.

Its a bit disappointing to see that the company has failed to grow its EPS. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Agfa-Gevaert NV Been A Good Investment?

The return of -75% over three years would not have pleased Agfa-Gevaert NV shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Agfa-Gevaert that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.