Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For GEA Group Aktiengesellschaft's (ETR:G1A) CEO For Now
Key Insights
GEA Group's Annual General Meeting to take place on 30th of April
Salary of €1.44m is part of CEO Stefan Klebert's total remuneration
The total compensation is 136% higher than the average for the industry
Over the past three years, GEA Group's EPS grew by 56% and over the past three years, the total shareholder return was 8.6%
CEO Stefan Klebert has done a decent job of delivering relatively good performance at GEA Group Aktiengesellschaft (ETR:G1A) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for GEA Group
How Does Total Compensation For Stefan Klebert Compare With Other Companies In The Industry?
According to our data, GEA Group Aktiengesellschaft has a market capitalization of €6.6b, and paid its CEO total annual compensation worth €4.9m over the year to December 2023. That's a notable increase of 8.6% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.4m.
In comparison with other companies in the German Machinery industry with market capitalizations ranging from €3.7b to €11b, the reported median CEO total compensation was €2.1m. Accordingly, our analysis reveals that GEA Group Aktiengesellschaft pays Stefan Klebert north of the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €1.4m | €1.4m | 29% |
Other | €3.5m | €3.1m | 71% |
Total Compensation | €4.9m | €4.5m | 100% |
Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. It's interesting to note that GEA Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at GEA Group Aktiengesellschaft's Growth Numbers
Over the past three years, GEA Group Aktiengesellschaft has seen its earnings per share (EPS) grow by 56% per year. In the last year, its revenue is up 4.0%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 GEA Group Aktiengesellschaft Been A Good Investment?
With a total shareholder return of 8.6% over three years, GEA Group Aktiengesellschaft has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for GEA Group that you should be aware of before investing.
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.
