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

Key Insights

• DSV will host its Annual General Meeting on 16th of March
• CEO Jens Andersen's total compensation includes salary of kr.15.9m
• Total compensation is similar to the industry average
• DSV's EPS grew by 63% over the past three years while total shareholder return over the past three years was 121%

The performance at DSV A/S (CPH:DSV) has been quite strong recently and CEO Jens Andersen has played a role in it. Coming up to the next AGM on 16th of March, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for DSV

Comparing DSV A/S' CEO Compensation With The Industry

Our data indicates that DSV A/S has a market capitalization of kr.280b, and total annual CEO compensation was reported as kr.25m for the year to December 2022. Notably, that's an increase of 9.5% over the year before. In particular, the salary of kr.15.9m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Denmark Logistics industry with market capitalizations above kr.56b, reported a median total CEO compensation of kr.31m. From this we gather that Jens Andersen is paid around the median for CEOs in the industry.

Component	2022	2021	Proportion (2022)
Salary	kr.16m	kr.15m	63%
Other	kr.9.4m	kr.7.9m	37%
Total Compensation	kr.25m	kr.23m	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. There isn't a significant difference between DSV and the broader market, in terms of salary allocation in the overall compensation package. 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 DSV A/S' Growth Numbers

Over the past three years, DSV A/S has seen its earnings per share (EPS) grow by 63% per year. It achieved revenue growth of 29% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 DSV A/S Been A Good Investment?

Boasting a total shareholder return of 121% over three years, DSV A/S has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

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 DSV that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.