Here's Why It's Unlikely That Just Eat Takeaway.com N.V.'s (AMS:TKWY) CEO Will See A Pay Rise This Year

Key Insights

• Just Eat Takeaway.com will host its Annual General Meeting on 16th of May
• CEO Jitse Groen's total compensation includes salary of €670.0k
• The overall pay is comparable to the industry average
• Just Eat Takeaway.com's EPS declined by 40% over the past three years while total shareholder loss over the past three years was 82%

Just Eat Takeaway.com N.V. (AMS:TKWY) has not performed well recently and CEO Jitse Groen will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 16th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Just Eat Takeaway.com

How Does Total Compensation For Jitse Groen Compare With Other Companies In The Industry?

According to our data, Just Eat Takeaway.com N.V. has a market capitalization of €2.7b, and paid its CEO total annual compensation worth €1.6m over the year to December 2023. We note that's an increase of 22% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €670k.

In comparison with other companies in the the Netherlands Hospitality industry with market capitalizations ranging from €1.9b to €6.0b, the reported median CEO total compensation was €1.5m. So it looks like Just Eat Takeaway.com compensates Jitse Groen in line with the median for the industry. Furthermore, Jitse Groen directly owns €204m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	€670k	€488k	41%
Other	€952k	€840k	59%
Total Compensation	€1.6m	€1.3m	100%

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. In Just Eat Takeaway.com's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Just Eat Takeaway.com N.V.'s Growth

Over the last three years, Just Eat Takeaway.com N.V. has shrunk its earnings per share by 40% per year. It saw its revenue drop 7.1% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Just Eat Takeaway.com N.V. Been A Good Investment?

The return of -82% over three years would not have pleased Just Eat Takeaway.com N.V. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Just Eat Takeaway.com that investors should look into moving forward.

Switching gears from Just Eat Takeaway.com, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.