We Discuss Why Berentzen-Gruppe Aktiengesellschaft's (ETR:BEZ) CEO Compensation May Be Closely Reviewed

In This Article:

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.

ceo-compensation
XTRA:BEZ CEO Compensation May 10th 2024

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.