Yahoo Finance Increases to CEO Compensation Might Be Put On Hold For Now at RWE Aktiengesellschaft (ETR:RWE)
Key Insights
RWE will host its Annual General Meeting on 3rd of May
CEO Markus Krebber's total compensation includes salary of €1.42m
The total compensation is 3,294% higher than the average for the industry
RWE's total shareholder return over the past three years was 6.7% while its EPS grew by 14% over the past three years
CEO Markus Krebber has done a decent job of delivering relatively good performance at RWE Aktiengesellschaft (ETR:RWE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of May. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for RWE
How Does Total Compensation For Markus Krebber Compare With Other Companies In The Industry?
Our data indicates that RWE Aktiengesellschaft has a market capitalization of €24b, and total annual CEO compensation was reported as €6.4m for the year to December 2023. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.4m.
In comparison with other companies in the German Renewable Energy industry with market capitalizations over €7.5b, the reported median total CEO compensation was €188k. Hence, we can conclude that Markus Krebber is remunerated higher than the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €1.4m | €1.3m | 22% |
Other | €5.0m | €5.0m | 78% |
Total Compensation | €6.4m | €6.2m | 100% |
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. RWE sets aside a smaller share of compensation for salary, in comparison to the overall 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 RWE Aktiengesellschaft's Growth Numbers
RWE Aktiengesellschaft has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is down 22% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 RWE Aktiengesellschaft Been A Good Investment?
RWE Aktiengesellschaft has not done too badly by shareholders, with a total return of 6.7%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
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. In our study, we found 3 warning signs for RWE you should be aware of, and 1 of them is a bit unpleasant.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
