Yahoo Finance Shareholders May Be Wary Of Increasing Global Fashion Group S.A.'s (ETR:GFG) CEO Compensation Package
Key Insights
Global Fashion Group will host its Annual General Meeting on 12th of June
Total pay for CEO Christoph Barchewitz includes €751.6k salary
Total compensation is 168% above industry average
Over the past three years, Global Fashion Group's EPS fell by 18% and over the past three years, the total loss to shareholders 98%
The results at Global Fashion Group S.A. (ETR:GFG) have been quite disappointing recently and CEO Christoph Barchewitz bears some responsibility for this. At the upcoming AGM on 12th of June, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Global Fashion Group
How Does Total Compensation For Christoph Barchewitz Compare With Other Companies In The Industry?
According to our data, Global Fashion Group S.A. has a market capitalization of €49m, and paid its CEO total annual compensation worth €1.1m over the year to December 2023. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at €751.6k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the German Specialty Retail industry with market capitalizations under €184m, the reported median total CEO compensation was €428k. This suggests that Christoph Barchewitz is paid more than the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €752k | €664k | 66% |
Other | €394k | €499k | 34% |
Total Compensation | €1.1m | €1.2m | 100% |
Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. It's interesting to note that Global Fashion Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Global Fashion Group S.A.'s Growth Numbers
Over the last three years, Global Fashion Group S.A. has shrunk its earnings per share by 18% per year. In the last year, its revenue is down 22%.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Global Fashion Group S.A. Been A Good Investment?
With a total shareholder return of -98% over three years, Global Fashion Group S.A. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Global Fashion Group we think you should know about.
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.
