It's Unlikely That The CEO Of Genmab A/S (CPH:GMAB) Will See A Huge Pay Rise This Year

Key Insights

• Genmab to hold its Annual General Meeting on 12th of March
• Total pay for CEO Jan G.J. de Winkel includes kr.9.70m salary
• The total compensation is similar to the average for the industry
• Genmab's three-year loss to shareholders was 25% while its EPS grew by 40% over the past three years

The underwhelming share price performance of Genmab A/S (CPH:GMAB) 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. These are some of the concerns that shareholders may want to bring up at the next AGM held on 12th of March. 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.

See our latest analysis for Genmab

How Does Total Compensation For Jan G.J. de Winkel Compare With Other Companies In The Industry?

According to our data, Genmab A/S has a market capitalization of kr.105b, and paid its CEO total annual compensation worth kr.55m over the year to December 2024. That's a notable increase of 24% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at kr.9.7m.

On comparing similar companies in the Denmark Biotechs industry with market capitalizations above kr.55b, we found that the median total CEO compensation was kr.77m. This suggests that Genmab remunerates its CEO largely in line with the industry average. Furthermore, Jan G.J. de Winkel directly owns kr.1.0b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr.9.7m	kr.9.2m	18%
Other	kr.45m	kr.35m	82%
Total Compensation	kr.55m	kr.44m	100%

Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. Genmab 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.

Genmab A/S' Growth

Genmab A/S's earnings per share (EPS) grew 40% per year over the last three years. It achieved revenue growth of 31% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Genmab A/S Been A Good Investment?

Since shareholders would have lost about 25% over three years, some Genmab A/S investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. 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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

Whatever your view on compensation, you might want to check if insiders are buying or selling Genmab shares (free trial).

Important note: Genmab 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.