We Think Some Shareholders May Hesitate To Increase Telenet Group Holding NV's (EBR:TNET) CEO Compensation

Key Insights

• Telenet Group Holding's Annual General Meeting to take place on 26th of April
• CEO John Porter's total compensation includes salary of €630.0k
• Total compensation is 62% above industry average
• Telenet Group Holding's three-year loss to shareholders was 29% while its EPS grew by 63% over the past three years

The underwhelming share price performance of Telenet Group Holding NV (EBR:TNET) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 26th of April. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Telenet Group Holding

How Does Total Compensation For John Porter Compare With Other Companies In The Industry?

At the time of writing, our data shows that Telenet Group Holding NV has a market capitalization of €2.3b, and reported total annual CEO compensation of €4.3m for the year to December 2022. We note that's a decrease of 22% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €630k.

For comparison, other companies in the Belgium Media industry with market capitalizations ranging between €1.8b and €5.8b had a median total CEO compensation of €2.6m. Accordingly, our analysis reveals that Telenet Group Holding NV pays John Porter north of the industry median.

Component	2022	2021	Proportion (2022)
Salary	€630k	€630k	15%
Other	€3.6m	€4.9m	85%
Total Compensation	€4.3m	€5.5m	100%

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. Telenet Group Holding pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Telenet Group Holding NV's Growth

Over the past three years, Telenet Group Holding NV has seen its earnings per share (EPS) grow by 63% per year. In the last year, its revenue is up 2.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Telenet Group Holding NV Been A Good Investment?

With a three year total loss of 29% for the shareholders, Telenet Group Holding NV would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 6 warning signs for Telenet Group Holding (4 are a bit concerning!) that you should be aware of before investing here.

Important note: Telenet Group Holding 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.