Here's Why It's Unlikely That Netcompany Group A/S' (CPH:NETC) CEO Will See A Pay Rise This Year

Key Insights

• Netcompany Group's Annual General Meeting to take place on 4th of March
• Total pay for CEO Andre Rogaczewski includes kr.8.40m salary
• Total compensation is 126% above industry average
• Netcompany Group's EPS declined by 5.2% over the past three years while total shareholder loss over the past three years was 32%

Netcompany Group A/S (CPH:NETC) has not performed well recently and CEO Andre Rogaczewski will probably need to up their game. At the upcoming AGM on 4th of March, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Netcompany Group

Comparing Netcompany Group A/S' CEO Compensation With The Industry

According to our data, Netcompany Group A/S has a market capitalization of kr.14b, and paid its CEO total annual compensation worth kr.11m over the year to December 2024. We note that's an increase of 35% above last year. Notably, the salary which is kr.8.40m, represents most of the total compensation being paid.

For comparison, other companies in the Denmark IT industry with market capitalizations ranging between kr.7.1b and kr.23b had a median total CEO compensation of kr.4.8m. Hence, we can conclude that Andre Rogaczewski is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	kr.8.4m	kr.7.3m	78%
Other	kr.2.4m	kr.700k	22%
Total Compensation	kr.11m	kr.8.0m	100%

Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. Netcompany Group pays out 78% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Netcompany Group A/S' Growth

Over the last three years, Netcompany Group A/S has shrunk its earnings per share by 5.2% per year. Its revenue is up 7.6% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Netcompany Group A/S Been A Good Investment?

Few Netcompany Group A/S shareholders would feel satisfied with the return of -32% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Netcompany Group that investors should think about before committing capital to this stock.

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.