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

Key Insights

• Nedap's Annual General Meeting to take place on 11th of April
• CEO Ruben Wegman's total compensation includes salary of €455.0k
• The overall pay is 63% above the industry average
• Nedap's EPS grew by 16% over the past three years while total shareholder return over the past three years was 24%

Under the guidance of CEO Ruben Wegman, Nedap N.V. (AMS:NEDAP) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Nedap

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

At the time of writing, our data shows that Nedap N.V. has a market capitalization of €442m, and reported total annual CEO compensation of €930k for the year to December 2023. That's just a smallish increase of 5.0% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €455k.

In comparison with other companies in the the Netherlands Electronic industry with market capitalizations ranging from €185m to €738m, the reported median CEO total compensation was €570k. Hence, we can conclude that Ruben Wegman is remunerated higher than the industry median. Moreover, Ruben Wegman also holds €4.6m worth of Nedap stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	€455k	€431k	49%
Other	€475k	€455k	51%
Total Compensation	€930k	€886k	100%

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. In Nedap's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Nedap N.V.'s Growth Numbers

Over the past three years, Nedap N.V. has seen its earnings per share (EPS) grow by 16% per year. In the last year, its revenue is up 14%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing 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 Nedap N.V. Been A Good Investment?

With a total shareholder return of 24% over three years, Nedap N.V. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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. We did our research and spotted 1 warning sign for Nedap that investors should look into moving forward.

Switching gears from Nedap, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.