Netcompany Group A/S' (CPH:NETC) CEO Will Probably Have Their Compensation Approved By Shareholders

By
Simply Wall St
Published
February 24, 2022
CPSE:NETC
Source: Shutterstock

We have been pretty impressed with the performance at Netcompany Group A/S (CPH:NETC) recently and CEO Andre Rogaczewski deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 02 March 2022. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Netcompany Group

How Does Total Compensation For Andre Rogaczewski Compare With Other Companies In The Industry?

Our data indicates that Netcompany Group A/S has a market capitalization of kr.21b, and total annual CEO compensation was reported as kr.12m for the year to December 2021. Notably, that's an increase of 13% over the year before. Notably, the salary which is kr.8.17m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between kr.13b and kr.42b had a median total CEO compensation of kr.12m. So it looks like Netcompany Group compensates Andre Rogaczewski in line with the median for the industry.

Component20212020Proportion (2021)
Salary kr.8.2m kr.7.2m 71%
Other kr.3.4m kr.3.0m 29%
Total Compensationkr.12m kr.10m100%

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Netcompany Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
CPSE:NETC CEO Compensation February 24th 2022

Netcompany Group A/S' Growth

Netcompany Group A/S's earnings per share (EPS) grew 47% per year over the last three years. In the last year, its revenue is up 28%.

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 Netcompany Group A/S Been A Good Investment?

We think that the total shareholder return of 79%, over three years, would leave most Netcompany Group A/S shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Netcompany Group (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Important note: Netcompany Group 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.