Here's Why Shareholders Should Examine Corbion N.V.'s (AMS:CRBN) CEO Compensation Package More Closely

Key Insights

• Corbion will host its Annual General Meeting on 15th of May
• Salary of €713.0k is part of CEO Olivier Rigaud's total remuneration
• The total compensation is similar to the average for the industry
• Corbion's EPS declined by 0.2% over the past three years while total shareholder loss over the past three years was 53%

The results at Corbion N.V. (AMS:CRBN) have been quite disappointing recently and CEO Olivier Rigaud bears some responsibility for this. At the upcoming AGM on 15th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Corbion

How Does Total Compensation For Olivier Rigaud Compare With Other Companies In The Industry?

According to our data, Corbion N.V. has a market capitalization of €1.3b, and paid its CEO total annual compensation worth €1.6m over the year to December 2023. That's a notable decrease of 17% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €713k.

On examining similar-sized companies in the the Netherlands Chemicals industry with market capitalizations between €930m and €3.0b, we discovered that the median CEO total compensation of that group was €1.6m. From this we gather that Olivier Rigaud is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	€713k	€650k	45%
Other	€866k	€1.3m	55%
Total Compensation	€1.6m	€1.9m	100%

On an industry level, around 39% of total compensation represents salary and 61% is other remuneration. It's interesting to note that Corbion pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Corbion N.V.'s Growth

Earnings per share at Corbion N.V. are much the same as they were three years ago, albeit slightly lower. The trailing twelve months of revenue was pretty much the same as the prior period.

Its a bit disappointing to see that the company has failed to grow its EPS. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Corbion N.V. Been A Good Investment?

Few Corbion N.V. shareholders would feel satisfied with the return of -53% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

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 Corbion that you should be aware of before investing.

Important note: Corbion 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.