Increases to Aktieselskabet Schouw & Co.'s (CPH:SCHO) CEO Compensation Might Cool off for now

Key Insights

• Aktieselskabet Schouw will host its Annual General Meeting on 10th of April
• CEO Jens Sørensen's total compensation includes salary of kr.9.62m
• The overall pay is 119% above the industry average
• Aktieselskabet Schouw's three-year loss to shareholders was 13% while its EPS grew by 1.7% over the past three years

In the past three years, shareholders of Aktieselskabet Schouw & Co. (CPH:SCHO) 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. The AGM coming up on the 10th of April could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Aktieselskabet Schouw

Comparing Aktieselskabet Schouw & Co.'s CEO Compensation With The Industry

Our data indicates that Aktieselskabet Schouw & Co. has a market capitalization of kr.13b, and total annual CEO compensation was reported as kr.19m for the year to December 2023. That's a notable increase of 15% on last year. We note that the salary of kr.9.62m makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the Denmark Food industry with market caps ranging from kr.6.9b to kr.22b, we found that the median CEO total compensation was kr.8.6m. Accordingly, our analysis reveals that Aktieselskabet Schouw & Co. pays Jens Sørensen north of the industry median. What's more, Jens Sørensen holds kr.30m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	kr.9.6m	kr.9.2m	51%
Other	kr.9.2m	kr.7.2m	49%
Total Compensation	kr.19m	kr.16m	100%

Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. Our data reveals that Aktieselskabet Schouw allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Aktieselskabet Schouw & Co.'s Growth Numbers

Aktieselskabet Schouw & Co.'s earnings per share (EPS) grew 1.7% per year over the last three years. It achieved revenue growth of 14% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Aktieselskabet Schouw & Co. Been A Good Investment?

Given the total shareholder loss of 13% over three years, many shareholders in Aktieselskabet Schouw & Co. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 Aktieselskabet Schouw that investors should be aware of in a dynamic business environment.

Switching gears from Aktieselskabet Schouw, 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.