Here's Why Shareholders May Want To Be Cautious With Increasing Royal Unibrew A/S' (CPH:RBREW) CEO Pay Packet

Key Insights

• Royal Unibrew will host its Annual General Meeting on 29th of April
• Total pay for CEO Lars Jensen includes kr.9.00m salary
• Total compensation is 137% above industry average
• Royal Unibrew's EPS grew by 3.0% over the past three years while total shareholder loss over the past three years was 2.3%

Our free stock report includes 2 warning signs investors should be aware of before investing in Royal Unibrew. Read for free now.

In the past three years, shareholders of Royal Unibrew A/S (CPH:RBREW) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 29th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Royal Unibrew

Comparing Royal Unibrew A/S' CEO Compensation With The Industry

Our data indicates that Royal Unibrew A/S has a market capitalization of kr.29b, and total annual CEO compensation was reported as kr.24m for the year to December 2024. That's a notable increase of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at kr.9.0m.

For comparison, other companies in the Denmark Beverage industry with market capitalizations ranging between kr.13b and kr.42b had a median total CEO compensation of kr.9.9m. Accordingly, our analysis reveals that Royal Unibrew A/S pays Lars Jensen north of the industry median. Furthermore, Lars Jensen directly owns kr.50m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr.9.0m	kr.8.6m	38%
Other	kr.15m	kr.13m	62%
Total Compensation	kr.24m	kr.21m	100%

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. Royal Unibrew sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Royal Unibrew A/S' Growth Numbers

Over the past three years, Royal Unibrew A/S has seen its earnings per share (EPS) grow by 3.0% per year. Its revenue is up 16% over the last year.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Royal Unibrew A/S Been A Good Investment?

Given the total shareholder loss of 2.3% over three years, many shareholders in Royal Unibrew A/S are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Royal Unibrew that investors should look into moving forward.

Switching gears from Royal Unibrew, 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.

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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.