Increases to CEO Compensation Might Be Put On Hold For Now at Royal Boskalis Westminster N.V. (AMS:BOKA)

CEO Peter A. Berdowski has done a decent job of delivering relatively good performance at Royal Boskalis Westminster N.V. (AMS:BOKA) recently. As shareholders go into the upcoming AGM on 12 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Royal Boskalis Westminster

Comparing Royal Boskalis Westminster N.V.'s CEO Compensation With the industry

Our data indicates that Royal Boskalis Westminster N.V. has a market capitalization of €3.5b, and total annual CEO compensation was reported as €2.2m for the year to December 2020. We note that's an increase of 18% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €896k.

On comparing similar companies from the same industry with market caps ranging from €1.7b to €5.3b, we found that the median CEO total compensation was €1.4m. Hence, we can conclude that Peter A. Berdowski is remunerated higher than the industry median. What's more, Peter A. Berdowski holds €2.7m worth of shares in the company in their own name.

Component	2020	2019	Proportion (2020)
Salary	€896k	€870k	40%
Other	€1.3m	€1.0m	60%
Total Compensation	€2.2m	€1.9m	100%

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. Royal Boskalis Westminster pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Royal Boskalis Westminster N.V.'s Growth Numbers

Royal Boskalis Westminster N.V.'s earnings per share (EPS) grew 31% per year over the last three years. Its revenue is down 6.2% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Royal Boskalis Westminster N.V. Been A Good Investment?

Royal Boskalis Westminster N.V. has served shareholders reasonably well, with a total return of 19% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Royal Boskalis Westminster that investors should look into moving forward.

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. 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.
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