It Looks Like Agfa-Gevaert NV's (EBR:AGFB) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Agfa-Gevaert will host its Annual General Meeting on 14th of May
• CEO Pascal Juery's total compensation includes salary of €780.0k
• The overall pay is 95% above the industry average
• Agfa-Gevaert's EPS declined by 45% over the past three years while total shareholder loss over the past three years was 66%

Agfa-Gevaert NV (EBR:AGFB) has not performed well recently and CEO Pascal Juery will probably need to up their game. At the upcoming AGM on 14th 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.

View our latest analysis for Agfa-Gevaert

How Does Total Compensation For Pascal Juery Compare With Other Companies In The Industry?

According to our data, Agfa-Gevaert NV has a market capitalization of €200m, and paid its CEO total annual compensation worth €1.2m over the year to December 2023. That's just a smallish increase of 6.2% on last year. In particular, the salary of €780.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Belgium Healthcare Services industry with market capitalizations ranging between €93m and €372m had a median total CEO compensation of €607k. This suggests that Pascal Juery is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	€780k	€780k	66%
Other	€403k	€334k	34%
Total Compensation	€1.2m	€1.1m	100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Agfa-Gevaert is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Agfa-Gevaert NV's Growth Numbers

Agfa-Gevaert NV has reduced its earnings per share by 45% a year over the last three years. In the last year, its revenue changed by just 0.4%.

Overall this is not a very positive result for shareholders. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Agfa-Gevaert NV Been A Good Investment?

With a total shareholder return of -66% over three years, Agfa-Gevaert NV shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation can have a massive impact on performance, but it's just one element. 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.

Switching gears from Agfa-Gevaert, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.