We Take A Look At Why Koninklijke Vopak N.V.'s (AMS:VPK) CEO Has Earned Their Pay Packet

Key Insights

• Koninklijke Vopak to hold its Annual General Meeting on 23rd of April
• CEO Dick Richelle's total compensation includes salary of €786.5k
• The total compensation is similar to the average for the industry
• Koninklijke Vopak's EPS grew by 23% over the past three years while total shareholder return over the past three years was 49%

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We have been pretty impressed with the performance at Koninklijke Vopak N.V. (AMS:VPK) recently and CEO Dick Richelle deserves a mention for their role in it. Coming up to the next AGM on 23rd of April, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Koninklijke Vopak

Comparing Koninklijke Vopak N.V.'s CEO Compensation With The Industry

At the time of writing, our data shows that Koninklijke Vopak N.V. has a market capitalization of €4.5b, and reported total annual CEO compensation of €2.9m for the year to December 2024. We note that's an increase of 14% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €787k.

On comparing similar companies from the the Netherlands Oil and Gas industry with market caps ranging from €3.5b to €11b, we found that the median CEO total compensation was €2.3m. This suggests that Koninklijke Vopak remunerates its CEO largely in line with the industry average. Furthermore, Dick Richelle directly owns €940k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	€787k	€742k	27%
Other	€2.1m	€1.8m	73%
Total Compensation	€2.9m	€2.6m	100%

On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. It's interesting to note that Koninklijke Vopak allocates a smaller portion of compensation to salary 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.

Koninklijke Vopak N.V.'s Growth

Over the past three years, Koninklijke Vopak N.V. has seen its earnings per share (EPS) grow by 23% per year. It saw its revenue drop 7.7% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Koninklijke Vopak N.V. Been A Good Investment?

Most shareholders would probably be pleased with Koninklijke Vopak N.V. for providing a total return of 49% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 1 warning sign for Koninklijke Vopak that investors should look into moving forward.

Important note: Koninklijke Vopak 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.