Yahoo Finance Some Shareholders May Object To A Pay Rise For Nordex SE's (ETR:NDX1) CEO This Year
Key Insights
Nordex will host its Annual General Meeting on 23rd of April
CEO Jose Blanco Diéguez's total compensation includes salary of €660.0k
The total compensation is 37% less than the average for the industry
Over the past three years, Nordex's EPS fell by 25% and over the past three years, the total loss to shareholders 38%
The underwhelming performance at Nordex SE (ETR:NDX1) recently has probably not pleased shareholders. At the upcoming AGM on 23rd of April, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
Check out our latest analysis for Nordex
How Does Total Compensation For Jose Blanco Diéguez Compare With Other Companies In The Industry?
According to our data, Nordex SE has a market capitalization of €2.9b, and paid its CEO total annual compensation worth €1.2m over the year to December 2023. Notably, that's a decrease of 15% over the year before. We note that the salary of €660.0k makes up a sizeable portion of the total compensation received by the CEO.
On comparing similar companies from the German Electrical industry with market caps ranging from €1.9b to €6.0b, we found that the median CEO total compensation was €1.9m. That is to say, Jose Blanco Diéguez is paid under the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €660k | €610k | 55% |
Other | €543k | €813k | 45% |
Total Compensation | €1.2m | €1.4m | 100% |
Talking in terms of the industry, salary represented approximately 41% of total compensation out of all the companies we analyzed, while other remuneration made up 59% of the pie. It's interesting to note that Nordex pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Nordex SE's Growth
Nordex SE has reduced its earnings per share by 25% a year over the last three years. It achieved revenue growth of 14% over the last year.
The decline in EPS is a bit concerning. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Nordex SE Been A Good Investment?
With a total shareholder return of -38% over three years, Nordex SE shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Nordex that investors should think about before committing capital to this stock.
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.
