It Looks Like DGB Group N.V.'s (AMS:DGB) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• DGB Group will host its Annual General Meeting on 16th of May
• Total pay for CEO Selwyn A. Duijvestijn includes €120.0k salary
• The overall pay is comparable to the industry average
• DGB Group's three-year loss to shareholders was 71% while its EPS was down 35% over the past three years

DGB Group N.V. (AMS:DGB) has not performed well recently and CEO Selwyn A. Duijvestijn will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 16th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for DGB Group

How Does Total Compensation For Selwyn A. Duijvestijn Compare With Other Companies In The Industry?

At the time of writing, our data shows that DGB Group N.V. has a market capitalization of €5.6m, and reported total annual CEO compensation of €240k for the year to December 2023. This was the same as last year. In particular, the salary of €120.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the the Netherlands Commercial Services industry with market capitalizations under €185m, the reported median total CEO compensation was €306k. This suggests that DGB Group remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	€120k	€120k	50%
Other	€120k	€120k	50%
Total Compensation	€240k	€240k	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. In DGB Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry.

DGB Group N.V.'s Growth

Over the last three years, DGB Group N.V. has shrunk its earnings per share by 35% per year. Its revenue is down 87% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has DGB Group N.V. Been A Good Investment?

With a total shareholder return of -71% over three years, DGB Group N.V. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 6 warning signs for DGB Group (of which 5 are concerning!) that you should know about in order to have a holistic understanding of the stock.

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.