Increases to ForFarmers N.V.'s (AMS:FFARM) CEO Compensation Might Cool off for now

Key Insights

• ForFarmers will host its Annual General Meeting on 17th of April
• Salary of €584.8k is part of CEO Pieter Wolleswinkel's total remuneration
• The total compensation is 42% higher than the average for the industry
• Over the past three years, ForFarmers' EPS grew by 41% and over the past three years, the total shareholder return was 44%

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CEO Pieter Wolleswinkel has done a decent job of delivering relatively good performance at ForFarmers N.V. (AMS:FFARM) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of April. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for ForFarmers

Comparing ForFarmers N.V.'s CEO Compensation With The Industry

Our data indicates that ForFarmers N.V. has a market capitalization of €358m, and total annual CEO compensation was reported as €1.1m for the year to December 2024. That's a notable increase of 40% on last year. Notably, the salary which is €584.8k, represents a considerable chunk of the total compensation being paid.

On examining similar-sized companies in the the Netherlands Food industry with market capitalizations between €183m and €731m, we discovered that the median CEO total compensation of that group was €811k. This suggests that Pieter Wolleswinkel is paid more than the median for the industry. Furthermore, Pieter Wolleswinkel directly owns €676k worth of shares in the company.

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. Although there is a difference in how total compensation is set, ForFarmers more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ForFarmers N.V.'s Growth

Over the past three years, ForFarmers N.V. has seen its earnings per share (EPS) grow by 41% per year. It saw its revenue drop 7.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 ForFarmers N.V. Been A Good Investment?

Most shareholders would probably be pleased with ForFarmers N.V. for providing a total return of 44% over three years. 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for ForFarmers that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.