We Take A Look At Why Koninklijke BAM Groep nv's (AMS:BAMNB) CEO Has Earned Their Pay Packet

Key Insights

• Koninklijke BAM Groep's Annual General Meeting to take place on 12th of April
• Total pay for CEO Ruud Joosten includes €772.0k salary
• Total compensation is similar to the industry average
• Koninklijke BAM Groep's total shareholder return over the past three years was 42% while its EPS grew by 103% over the past three years

The performance at Koninklijke BAM Groep nv (AMS:BAMNB) has been quite strong recently and CEO Ruud Joosten has played a role in it. Coming up to the next AGM on 12th of April, 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Koninklijke BAM Groep

How Does Total Compensation For Ruud Joosten Compare With Other Companies In The Industry?

According to our data, Koninklijke BAM Groep nv has a market capitalization of €552m, and paid its CEO total annual compensation worth €2.1m over the year to December 2022. That's a notable increase of 25% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €772k.

In comparison with other companies in the the Netherlands Construction industry with market capitalizations ranging from €366m to €1.5b, the reported median CEO total compensation was €1.7m. This suggests that Koninklijke BAM Groep remunerates its CEO largely in line with the industry average. Moreover, Ruud Joosten also holds €206k worth of Koninklijke BAM Groep stock directly under their own name.

Component	2022	2021	Proportion (2022)
Salary	€772k	€725k	37%
Other	€1.3m	€966k	63%
Total Compensation	€2.1m	€1.7m	100%

Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. Koninklijke BAM Groep sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Koninklijke BAM Groep nv's Growth Numbers

Koninklijke BAM Groep nv's earnings per share (EPS) grew 103% per year over the last three years. It saw its revenue drop 9.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Koninklijke BAM Groep nv Been A Good Investment?

Most shareholders would probably be pleased with Koninklijke BAM Groep nv for providing a total return of 42% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which shouldn't be ignored) in Koninklijke BAM Groep we think you should know about.

Important note: Koninklijke BAM Groep 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.