The Compensation For Wolters Kluwer N.V.'s (AMS:WKL) CEO Looks Deserved And Here's Why

Key Insights

• Wolters Kluwer's Annual General Meeting to take place on 8th of May
• Salary of €1.50m is part of CEO Nancy McKinstry's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Wolters Kluwer's EPS grew by 16% and over the past three years, the total shareholder return was 88%

The performance at Wolters Kluwer N.V. (AMS:WKL) has been quite strong recently and CEO Nancy McKinstry has played a role in it. Coming up to the next AGM on 8th of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders 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.

See our latest analysis for Wolters Kluwer

Comparing Wolters Kluwer N.V.'s CEO Compensation With The Industry

At the time of writing, our data shows that Wolters Kluwer N.V. has a market capitalization of €34b, and reported total annual CEO compensation of €8.4m for the year to December 2023. That's a fairly small increase of 6.0% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.5m.

On comparing similar companies in the Dutch Professional Services industry with market capitalizations above €7.5b, we found that the median total CEO compensation was €7.2m. So it looks like Wolters Kluwer compensates Nancy McKinstry in line with the median for the industry. Furthermore, Nancy McKinstry directly owns €9.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	€1.5m	€1.5m	18%
Other	€6.9m	€6.4m	82%
Total Compensation	€8.4m	€7.9m	100%

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. Wolters Kluwer 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.

Wolters Kluwer N.V.'s Growth

Over the past three years, Wolters Kluwer N.V. has seen its earnings per share (EPS) grow by 16% per year. Its revenue is up 2.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Wolters Kluwer N.V. Been A Good Investment?

Boasting a total shareholder return of 88% over three years, Wolters Kluwer N.V. 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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've identified 1 warning sign for Wolters Kluwer 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.