Shareholders Will Most Likely Find Aktieselskabet Schouw & Co.'s (CPH:SCHO) CEO Compensation Acceptable

Key Insights

• Aktieselskabet Schouw will host its Annual General Meeting on 10th of April
• Salary of kr.9.96m is part of CEO Jens Sørensen's total remuneration
• The overall pay is comparable to the industry average
• Aktieselskabet Schouw's EPS declined by 0.5% over the past three years while total shareholder return over the past three years was 13%

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Despite Aktieselskabet Schouw & Co.'s (CPH:SCHO) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. Some of these issues will occupy shareholders' minds as the AGM rolls around on 10th of April. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for Aktieselskabet Schouw

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

At the time of writing, our data shows that Aktieselskabet Schouw & Co. has a market capitalization of kr.14b, and reported total annual CEO compensation of kr.17m for the year to December 2024. We note that's a decrease of 9.3% compared to last year. We note that the salary of kr.9.96m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Denmark Food industry with market capitalizations ranging between kr.6.8b and kr.22b had a median total CEO compensation of kr.14m. This suggests that Aktieselskabet Schouw remunerates its CEO largely in line with the industry average. Furthermore, Jens Sørensen directly owns kr.62m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr.10.0m	kr.9.6m	58%
Other	kr.7.2m	kr.9.2m	42%
Total Compensation	kr.17m	kr.19m	100%

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. According to our research, Aktieselskabet Schouw has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Aktieselskabet Schouw & Co.'s Growth

Earnings per share at Aktieselskabet Schouw & Co. are much the same as they were three years ago, albeit slightly lower. In the last year, its revenue is down 6.8%.

The lack of EPS growth is certainly uninspiring. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has Aktieselskabet Schouw & Co. Been A Good Investment?

With a total shareholder return of 13% over three years, Aktieselskabet Schouw & Co. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Aktieselskabet Schouw (free visualization of insider trades).

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.