We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Koninklijke BAM Groep nv's (AMS:BAMNB) CEO For Now

Key Insights

• Koninklijke BAM Groep will host its Annual General Meeting on 10th of April
• Total pay for CEO Ruud Joosten includes €801.0k salary
• Total compensation is 31% above industry average
• Over the past three years, Koninklijke BAM Groep's EPS grew by 104% and over the past three years, the total shareholder return was 73%

Under the guidance of CEO Ruud Joosten, Koninklijke BAM Groep nv (AMS:BAMNB) has performed reasonably well recently. As shareholders go into the upcoming AGM on 10th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Koninklijke BAM Groep

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

Our data indicates that Koninklijke BAM Groep nv has a market capitalization of €952m, and total annual CEO compensation was reported as €2.1m for the year to December 2023. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €801k.

On comparing similar companies from the the Netherlands Construction industry with market caps ranging from €369m to €1.5b, we found that the median CEO total compensation was €1.6m. Hence, we can conclude that Ruud Joosten is remunerated higher than the industry median. Furthermore, Ruud Joosten directly owns €956k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	€801k	€772k	38%
Other	€1.3m	€1.3m	62%
Total Compensation	€2.1m	€2.1m	100%

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. It's interesting to note that Koninklijke BAM Groep allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Koninklijke BAM Groep nv's Growth Numbers

Koninklijke BAM Groep nv has seen its earnings per share (EPS) increase by 104% a year over the past three years. It saw its revenue drop 5.3% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in 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 Koninklijke BAM Groep nv Been A Good Investment?

Boasting a total shareholder return of 73% over three years, Koninklijke BAM Groep nv 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Koninklijke BAM Groep you should be aware of, and 1 of them shouldn't be ignored.

Switching gears from Koninklijke BAM Groep, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.