Yahoo Finance We Discuss Why Berentzen-Gruppe Aktiengesellschaft's (ETR:BEZ) CEO Compensation May Be Closely Reviewed
Key Insights
Berentzen-Gruppe will host its Annual General Meeting on 17th of May
Salary of €400.0k is part of CEO Oliver Schwegmann's total remuneration
Total compensation is 102% above industry average
Over the past three years, Berentzen-Gruppe's EPS fell by 11% and over the past three years, the total loss to shareholders 4.0%
The results at Berentzen-Gruppe Aktiengesellschaft (ETR:BEZ) have been quite disappointing recently and CEO Oliver Schwegmann bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 17th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Berentzen-Gruppe
Comparing Berentzen-Gruppe Aktiengesellschaft's CEO Compensation With The Industry
According to our data, Berentzen-Gruppe Aktiengesellschaft has a market capitalization of €53m, and paid its CEO total annual compensation worth €629k over the year to December 2023. Notably, that's a decrease of 13% over the year before. In particular, the salary of €400.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Germany Beverage industry with market capitalizations below €185m, reported a median total CEO compensation of €311k. Hence, we can conclude that Oliver Schwegmann is remunerated higher than the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €400k | €400k | 64% |
Other | €229k | €324k | 36% |
Total Compensation | €629k | €724k | 100% |
Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. Berentzen-Gruppe is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Berentzen-Gruppe Aktiengesellschaft's Growth
Berentzen-Gruppe Aktiengesellschaft has reduced its earnings per share by 11% a year over the last three years. In the last year, its revenue is up 6.6%.
Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Berentzen-Gruppe Aktiengesellschaft Been A Good Investment?
Given the total shareholder loss of 4.0% over three years, many shareholders in Berentzen-Gruppe Aktiengesellschaft are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
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, the board will get the chance to explain the steps it plans to take to improve business performance.
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 Berentzen-Gruppe you should be aware of, and 1 of them makes us a bit uncomfortable.
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.
