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Key Insights

• Cancom will host its Annual General Meeting on 5th of June

• Total pay for CEO Rudiger Rath includes €520.0k salary

• Total compensation is 94% above industry average

• Cancom's three-year loss to shareholders was 30% while its EPS grew by 4.2% over the past three years

Shareholders of Cancom SE (ETR:COK) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 5th of June 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. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Cancom

Comparing Cancom SE's CEO Compensation With The Industry

According to our data, Cancom SE has a market capitalization of €1.1b, and paid its CEO total annual compensation worth €859k over the year to December 2023. That's a notable increase of 68% on last year. We note that the salary portion, which stands at €520.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the German IT industry with market caps ranging from €370m to €1.5b, we found that the median CEO total compensation was €443k. Hence, we can conclude that Rudiger Rath is remunerated higher than the industry median.

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. Cancom is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Cancom SE's Growth Numbers

Over the past three years, Cancom SE has seen its earnings per share (EPS) grow by 4.2% per year. It achieved revenue growth of 25% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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.