Shareholders Will Probably Not Have Any Issues With DSV A/S' (CPH:DSV) CEO Compensation

Key Insights

• DSV will host its Annual General Meeting on 20th of March
• Total pay for CEO Jens Lund includes kr.15.6m salary
• The total compensation is similar to the average for the industry
• DSV's EPS declined by 4.4% over the past three years while total shareholder return over the past three years was 10%

The share price of DSV A/S (CPH:DSV) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 20th of March. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for DSV

How Does Total Compensation For Jens Lund Compare With Other Companies In The Industry?

At the time of writing, our data shows that DSV A/S has a market capitalization of kr.331b, and reported total annual CEO compensation of kr.26m for the year to December 2024. We note that's an increase of 19% above last year. Notably, the salary which is kr.15.6m, represents a considerable chunk of the total compensation being paid.

On comparing similar companies in the Denmark Logistics industry with market capitalizations above kr.55b, we found that the median total CEO compensation was kr.33m. So it looks like DSV compensates Jens Lund in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	kr.16m	kr.13m	59%
Other	kr.11m	kr.8.9m	41%
Total Compensation	kr.26m	kr.22m	100%

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. It's interesting to note that DSV pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

DSV A/S' Growth

Over the last three years, DSV A/S has shrunk its earnings per share by 4.4% per year. In the last year, its revenue is up 11%.

The decline in EPS is a bit concerning. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has DSV A/S Been A Good Investment?

DSV A/S has served shareholders reasonably well, with a total return of 10% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

Whatever your view on compensation, you might want to check if insiders are buying or selling DSV shares (free trial).

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.