Increases to CEO Compensation Might Be Put On Hold For Now at RWE Aktiengesellschaft (ETR:RWE)

In This Article:

Key Insights

  • RWE will host its Annual General Meeting on 3rd of May

  • CEO Markus Krebber's total compensation includes salary of €1.42m

  • The total compensation is 3,294% higher than the average for the industry

  • RWE's total shareholder return over the past three years was 6.7% while its EPS grew by 14% over the past three years

CEO Markus Krebber has done a decent job of delivering relatively good performance at RWE Aktiengesellschaft (ETR:RWE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of May. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for RWE

How Does Total Compensation For Markus Krebber Compare With Other Companies In The Industry?

Our data indicates that RWE Aktiengesellschaft has a market capitalization of €24b, and total annual CEO compensation was reported as €6.4m for the year to December 2023. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.4m.

In comparison with other companies in the German Renewable Energy industry with market capitalizations over €7.5b, the reported median total CEO compensation was €188k. Hence, we can conclude that Markus Krebber is remunerated higher than the industry median.

Component

2023

2022

Proportion (2023)

Salary

€1.4m

€1.3m

22%

Other

€5.0m

€5.0m

78%

Total Compensation

€6.4m

€6.2m

100%

On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. RWE sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at RWE Aktiengesellschaft's Growth Numbers

RWE Aktiengesellschaft has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is down 22% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 RWE Aktiengesellschaft Been A Good Investment?

RWE Aktiengesellschaft has not done too badly by shareholders, with a total return of 6.7%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.