Fugro N.V.'s (AMS:FUR) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Fugro to hold its Annual General Meeting on 24th of April
• CEO Mark Heine's total compensation includes salary of €741.7k
• The overall pay is comparable to the industry average
• Over the past three years, Fugro's EPS grew by 59% and over the past three years, the total loss to shareholders 4.2%

Our free stock report includes 1 warning sign investors should be aware of before investing in Fugro. Read for free now.

In the past three years, shareholders of Fugro N.V. (AMS:FUR) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 24th of April. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Fugro

How Does Total Compensation For Mark Heine Compare With Other Companies In The Industry?

At the time of writing, our data shows that Fugro N.V. has a market capitalization of €1.2b, and reported total annual CEO compensation of €2.5m for the year to December 2024. We note that's a decrease of 13% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €742k.

In comparison with other companies in the the Netherlands Construction industry with market capitalizations ranging from €878m to €2.8b, the reported median CEO total compensation was €2.2m. From this we gather that Mark Heine is paid around the median for CEOs in the industry. What's more, Mark Heine holds €2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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 Fugro allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Fugro N.V.'s Growth

Fugro N.V.'s earnings per share (EPS) grew 59% per year over the last three years. Its revenue is up 4.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Fugro N.V. Been A Good Investment?

With a three year total loss of 4.2% for the shareholders, Fugro N.V. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Fugro that investors should think about before committing capital to this stock.

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.

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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.