In This Article:
Key Insights
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Global Fashion Group will host its Annual General Meeting on 12th of June
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Total pay for CEO Christoph Barchewitz includes €751.6k salary
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Total compensation is 168% above industry average
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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..