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

Key Insights

• Corbion's Annual General Meeting to take place on 14th of May
• Salary of €725.0k is part of CEO Olivier Rigaud's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Corbion's EPS fell by 16% and over the past three years, the total loss to shareholders 38%

We've discovered 2 warning signs about Corbion. View them for free.

The results at Corbion N.V. (AMS:CRBN) have been quite disappointing recently and CEO Olivier Rigaud bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 14th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View 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 €1.1b, and paid its CEO total annual compensation worth €1.8m over the year to December 2024. That's a notable increase of 13% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €725k.

On comparing similar companies from the the Netherlands Chemicals industry with market caps ranging from €879m to €2.8b, we found that the median CEO total compensation was €1.7m. So it looks like Corbion compensates Olivier Rigaud in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€725k	€713k	40%
Other	€1.1m	€866k	60%
Total Compensation	€1.8m	€1.6m	100%

Talking in terms of the industry, salary represented approximately 32% of total compensation out of all the companies we analyzed, while other remuneration made up 68% of the pie. According to our research, Corbion has allocated a higher percentage of pay to salary in comparison to the wider 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

Over the last three years, Corbion N.V. has shrunk its earnings per share by 16% per year. It achieved revenue growth of 1.9% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Corbion N.V. Been A Good Investment?

Few Corbion N.V. shareholders would feel satisfied with the return of -38% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Corbion that investors should think about before committing capital to this stock.

Switching gears from Corbion, 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.