Yahoo Finance Shareholders May Not Be So Generous With TeamViewer SE's (ETR:TMV) CEO Compensation And Here's Why
Key Insights
TeamViewer to hold its Annual General Meeting on 7th of June
Total pay for CEO Oliver Steil includes €922.5k salary
Total compensation is 288% above industry average
TeamViewer's EPS grew by 14% over the past three years while total shareholder loss over the past three years was 62%
Shareholders of TeamViewer SE (ETR:TMV) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 7th of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for TeamViewer
How Does Total Compensation For Oliver Steil Compare With Other Companies In The Industry?
At the time of writing, our data shows that TeamViewer SE has a market capitalization of €1.9b, and reported total annual CEO compensation of €2.5m for the year to December 2023. We note that's an increase of 37% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €923k.
For comparison, other companies in the German Software industry with market capitalizations ranging between €923m and €3.0b had a median total CEO compensation of €638k. This suggests that Oliver Steil is paid more than the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €923k | €900k | 37% |
Other | €1.6m | €910k | 63% |
Total Compensation | €2.5m | €1.8m | 100% |
Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. TeamViewer 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 TeamViewer SE's Growth Numbers
TeamViewer SE has seen its earnings per share (EPS) increase by 14% a year over the past three years. In the last year, its revenue is up 9.3%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has TeamViewer SE Been A Good Investment?
With a total shareholder return of -62% over three years, TeamViewer SE shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for TeamViewer that investors should be aware of in a dynamic business environment.
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.
