It's Unlikely That The CEO Of Sif Holding N.V. (AMS:SIFG) Will See A Huge Pay Rise This Year
Key Insights
Sif Holding's Annual General Meeting to take place on 17th of May
Salary of €432.6k is part of CEO Fred van Beers's total remuneration
Total compensation is similar to the industry average
Over the past three years, Sif Holding's EPS grew by 1.8% and over the past three years, the total loss to shareholders 31%
Shareholders of Sif Holding N.V. (AMS:SIFG) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 17th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Sif Holding
How Does Total Compensation For Fred van Beers Compare With Other Companies In The Industry?
According to our data, Sif Holding N.V. has a market capitalization of €304m, and paid its CEO total annual compensation worth €891k over the year to December 2023. Notably, that's an increase of 22% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at €433k.
In comparison with other companies in the the Netherlands Electrical industry with market capitalizations ranging from €186m to €743m, the reported median CEO total compensation was €891k. From this we gather that Fred van Beers is paid around the median for CEOs in the industry. Furthermore, Fred van Beers directly owns €397k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €433k | €399k | 49% |
Other | €458k | €332k | 51% |
Total Compensation | €891k | €731k | 100% |
On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. There isn't a significant difference between Sif Holding and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Sif Holding N.V.'s Growth Numbers
Sif Holding N.V.'s earnings per share (EPS) grew 1.8% per year over the last three years. In the last year, its revenue is up 21%.
This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Sif Holding N.V. Been A Good Investment?
The return of -31% over three years would not have pleased Sif Holding 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 probably be keen to find out what are the other factors could be weighing down the stock. 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 is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Sif Holding (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
Important note: Sif Holding 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.