Shareholders Will Probably Hold Off On Increasing Basic-Fit N.V.'s (AMS:BFIT) CEO Compensation For The Time Being

Key Insights

• Basic-Fit's Annual General Meeting to take place on 6th of May
• CEO René Moos' total compensation includes salary of €729.1k
• The overall pay is comparable to the industry average
• Over the past three years, Basic-Fit's EPS grew by 132% and over the past three years, the total loss to shareholders 51%

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The underwhelming share price performance of Basic-Fit N.V. (AMS:BFIT) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 6th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Basic-Fit

How Does Total Compensation For René Moos Compare With Other Companies In The Industry?

According to our data, Basic-Fit N.V. has a market capitalization of €1.3b, and paid its CEO total annual compensation worth €1.7m over the year to December 2024. Notably, that's an increase of 11% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €729k.

On examining similar-sized companies in the the Netherlands Hospitality industry with market capitalizations between €879m and €2.8b, we discovered that the median CEO total compensation of that group was €2.1m. So it looks like Basic-Fit compensates René Moos in line with the median for the industry. What's more, René Moos holds €152m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. It's interesting to note that Basic-Fit 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.

A Look at Basic-Fit N.V.'s Growth Numbers

Basic-Fit N.V.'s earnings per share (EPS) grew 132% per year over the last three years. It achieved revenue growth of 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Basic-Fit N.V. Been A Good Investment?

The return of -51% over three years would not have pleased Basic-Fit N.V. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Basic-Fit we think you should know about.

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.