This is the conclusion of the trade union FNV in a study published today into the annual figures of the 49 largest listed companies in the Netherlands. This concerns companies such as Ahold, Randstad, KPN, ING and Unilever.
Oil and gas giant Shell was not included because it would dominate the research results given its enormous size.
Profit to shareholders
The researchers compared the data for the year 2022 with that of 2019 to see how the current situation compares to the period before the corona pandemic and the outbreak of war in Ukraine.
The research shows that distributions to shareholders increased by 59 percent during that period. To do this, the researchers added up the amounts that the companies spent on dividend payments and share repurchases. At 12 percent, the increase in employee salaries lagged sharply behind.
“Unacceptable”, says trade union leader Petra Bolster. “The profits of these companies did not reach the staff, while they are affected by the high inflation.”
Bonus drivers
The directors of the listed companies also benefited more than the employees, according to the research report. Executive compensation increased by 21 percent.
According to the FNV, more money from companies should go to employees, taxes and investments in the companies themselves, making them stronger and better able to guarantee employment.
Grab inflation
The study also shows that the profit margins of the listed companies have risen sharply between 2019 and 2022. Turnover rose on average by 21 percent, profits rose faster, by 36 percent. The profit margin rose in that period from 7.5 to 8.5 cents per euro of turnover.
“Companies are able to increase their margins on top of rising costs,” Bolster notes. “This is increasingly looking like ‘grab inflation’.”
The researchers do note, however, that it is difficult to say on the basis of the available data to what extent the companies’ rising profit margins actually contribute to inflation.
In addition to Shell, the results of Universal Media and Allfunds were also not taken into account, because these companies were not yet included in the stock market indices in 2019. Logistics company PostNL was included, because it only recently disappeared from the indices and is important in terms of employment in the Netherlands.
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