Shareholders May Not Be So Generous With CM.com N.V.'s (AMS:CMCOM) CEO Compensation And Here's Why

Key Insights

• CM.com's Annual General Meeting to take place on 9th of May
• Salary of €437.8k is part of CEO Jeroen van Glabbeek's total remuneration
• The overall pay is 49% above the industry average
• CM.com's EPS grew by 13% over the past three years while total shareholder loss over the past three years was 54%

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In the past three years, the share price of CM.com N.V. (AMS:CMCOM) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 9th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for CM.com

How Does Total Compensation For Jeroen van Glabbeek Compare With Other Companies In The Industry?

According to our data, CM.com N.V. has a market capitalization of €192m, and paid its CEO total annual compensation worth €680k over the year to December 2024. That's a slight decrease of 4.1% on the prior year. Notably, the salary which is €437.8k, represents most of the total compensation being paid.

For comparison, other companies in the the Netherlands Software industry with market capitalizations ranging between €89m and €354m had a median total CEO compensation of €457k. This suggests that Jeroen van Glabbeek is paid more than the median for the industry. What's more, Jeroen van Glabbeek holds €48m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. CM.com sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at CM.com N.V.'s Growth Numbers

CM.com N.V.'s earnings per share (EPS) grew 13% per year over the last three years. In the last year, its revenue is up 3.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 CM.com N.V. Been A Good Investment?

The return of -54% over three years would not have pleased CM.com N.V. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for CM.com that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.