We Take A Look At Why Koninklijke BAM Groep nv's (AMS:BAMNB) CEO Compensation Is Well Earned

Key Insights

• Koninklijke BAM Groep to hold its Annual General Meeting on 8th of May
• CEO Ruud Joosten's total compensation includes salary of €854.0k
• The overall pay is comparable to the industry average
• Koninklijke BAM Groep's EPS grew by 53% over the past three years while total shareholder return over the past three years was 162%

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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 8th of May, shareholders would be keeping this in mind. 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. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Koninklijke BAM Groep

Comparing Koninklijke BAM Groep nv's CEO Compensation With The Industry

Our data indicates that Koninklijke BAM Groep nv has a market capitalization of €1.6b, and total annual CEO compensation was reported as €2.7m for the year to December 2024. That's a notable increase of 31% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €854k.

On examining similar-sized companies in the the Netherlands Construction industry with market capitalizations between €886m and €2.8b, we discovered that the median CEO total compensation of that group was €2.3m. From this we gather that Ruud Joosten is paid around the median for CEOs in the industry. What's more, Ruud Joosten holds €8.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. Koninklijke BAM Groep sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Koninklijke BAM Groep nv's Growth

Koninklijke BAM Groep nv's earnings per share (EPS) grew 53% per year over the last three years. It achieved revenue growth of 2.9% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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?

Boasting a total shareholder return of 162% over three years, Koninklijke BAM Groep nv has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Koninklijke BAM Groep that investors should be aware of in a dynamic business environment.

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.