Increases to CEO Compensation Might Be Put On Hold For Now at Sligro Food Group N.V. (AMS:SLIGR)

Key Insights

• Sligro Food Group will host its Annual General Meeting on 27th of March
• CEO Koen Slippens' total compensation includes salary of €624.0k
• Total compensation is 97% above industry average
• Sligro Food Group's EPS grew by 86% over the past three years while total shareholder loss over the past three years was 39%

Shareholders of Sligro Food Group N.V. (AMS:SLIGR) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of March. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Sligro Food Group

Comparing Sligro Food Group N.V.'s CEO Compensation With The Industry

Our data indicates that Sligro Food Group N.V. has a market capitalization of €581m, and total annual CEO compensation was reported as €1.1m for the year to December 2023. That is, the compensation was roughly the same as last year. Notably, the salary which is €624.0k, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the the Netherlands Consumer Retailing industry with market capitalizations ranging from €366m to €1.5b, the reported median CEO total compensation was €563k. Hence, we can conclude that Koen Slippens is remunerated higher than the industry median. Moreover, Koen Slippens also holds €1.5m worth of Sligro Food Group stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€624k	€603k	56%
Other	€485k	€494k	44%
Total Compensation	€1.1m	€1.1m	100%

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. Sligro Food Group pays out 56% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Sligro Food Group N.V.'s Growth Numbers

Sligro Food Group N.V. has seen its earnings per share (EPS) increase by 86% a year over the past three years. It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing 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 Sligro Food Group N.V. Been A Good Investment?

Few Sligro Food Group N.V. shareholders would feel satisfied with the return of -39% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Sligro Food Group that investors should look into moving forward.

Important note: Sligro Food Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.