We Think The Compensation For ING Groep N.V.'s (AMS:INGA) CEO Looks About Right

Key Insights

• ING Groep's Annual General Meeting to take place on 22nd of April
• CEO Steven J. van Rijswijk's total compensation includes salary of €1.85m
• Total compensation is similar to the industry average
• Over the past three years, ING Groep's EPS grew by 4.5% and over the past three years, the total shareholder return was 118%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Performance at ING Groep N.V. (AMS:INGA) has been reasonably good and CEO Steven J. van Rijswijk has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 22nd of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

View our latest analysis for ING Groep

Comparing ING Groep N.V.'s CEO Compensation With The Industry

Our data indicates that ING Groep N.V. has a market capitalization of €49b, and total annual CEO compensation was reported as €2.7m for the year to December 2024. That's a modest increase of 3.4% on the prior year. We note that the salary portion, which stands at €1.85m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the the Netherlands Banks industry with market capitalizations above €7.0b, reported a median total CEO compensation of €2.6m. From this we gather that Steven J. van Rijswijk is paid around the median for CEOs in the industry. Moreover, Steven J. van Rijswijk also holds €1.6m worth of ING Groep stock directly under their own name.

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. Our data reveals that ING Groep allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ING Groep N.V.'s Growth

ING Groep N.V. has seen its earnings per share (EPS) increase by 4.5% a year over the past three years. Its revenue is up 14% over the last year.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ING Groep N.V. Been A Good Investment?

We think that the total shareholder return of 118%, over three years, would leave most ING Groep N.V. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for ING Groep that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.