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Key Insights

• Salzgitter will host its Annual General Meeting on 29th of May

• Total pay for CEO Gunnar Groebler includes €1.19m salary

• The overall pay is comparable to the industry average

• Salzgitter's EPS grew by 4.4% over the past three years while total shareholder loss over the past three years was 7.0%

In the past three years, the share price of Salzgitter AG (ETR:SZG) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 29th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Salzgitter

Comparing Salzgitter AG's CEO Compensation With The Industry

At the time of writing, our data shows that Salzgitter AG has a market capitalization of €1.2b, and reported total annual CEO compensation of €1.3m for the year to December 2023. We note that's a decrease of 29% compared to last year. We note that the salary portion, which stands at €1.19m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Germany Metals and Mining industry with market capitalizations ranging between €924m and €3.0b had a median total CEO compensation of €1.3m. This suggests that Salzgitter remunerates its CEO largely in line with the industry average.

On an industry level, roughly 54% of total compensation represents salary and 46% is other remuneration. According to our research, Salzgitter has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Salzgitter AG's Growth Numbers

Salzgitter AG's earnings per share (EPS) grew 4.4% per year over the last three years. It saw its revenue drop 14% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.