Yahoo Finance We Think Shareholders Will Probably Be Generous With Talanx AG's (ETR:TLX) CEO Compensation
Key Insights
Talanx to hold its Annual General Meeting on 7th of May
Total pay for CEO Torsten Leue includes €1.02m salary
The total compensation is similar to the average for the industry
Talanx's EPS grew by 34% over the past three years while total shareholder return over the past three years was 128%
It would be hard to discount the role that CEO Torsten Leue has played in delivering the impressive results at Talanx AG (ETR:TLX) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 7th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
View our latest analysis for Talanx
Comparing Talanx AG's CEO Compensation With The Industry
According to our data, Talanx AG has a market capitalization of €18b, and paid its CEO total annual compensation worth €3.5m over the year to December 2023. We note that's an increase of 12% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.0m.
For comparison, other companies in the Germany Insurance industry with market capitalizations above €7.5b, reported a median total CEO compensation of €3.9m. From this we gather that Torsten Leue is paid around the median for CEOs in the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €1.0m | €1.0m | 29% |
Other | €2.5m | €2.2m | 71% |
Total Compensation | €3.5m | €3.2m | 100% |
Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. Talanx sets aside a smaller share of compensation for salary, in comparison to the overall 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 Talanx AG's Growth Numbers
Talanx AG has seen its earnings per share (EPS) increase by 34% a year over the past three years. Its revenue is up 13% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Talanx AG Been A Good Investment?
Boasting a total shareholder return of 128% over three years, Talanx AG has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
Shareholders may want to check for free if Talanx insiders are buying or selling shares.
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.
