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We Think Shareholders Are Less Likely To Approve A Large Pay Rise For GEA Group Aktiengesellschaft's (ETR:G1A) CEO For Now

In This Article:

Key Insights

  • GEA Group's Annual General Meeting to take place on 30th of April

  • Salary of €1.44m is part of CEO Stefan Klebert's total remuneration

  • The total compensation is 136% higher than the average for the industry

  • Over the past three years, GEA Group's EPS grew by 56% and over the past three years, the total shareholder return was 8.6%

CEO Stefan Klebert has done a decent job of delivering relatively good performance at GEA Group Aktiengesellschaft (ETR:G1A) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for GEA Group

How Does Total Compensation For Stefan Klebert Compare With Other Companies In The Industry?

According to our data, GEA Group Aktiengesellschaft has a market capitalization of €6.6b, and paid its CEO total annual compensation worth €4.9m over the year to December 2023. That's a notable increase of 8.6% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.4m.

In comparison with other companies in the German Machinery industry with market capitalizations ranging from €3.7b to €11b, the reported median CEO total compensation was €2.1m. Accordingly, our analysis reveals that GEA Group Aktiengesellschaft pays Stefan Klebert north of the industry median.

Component

2023

2022

Proportion (2023)

Salary

€1.4m

€1.4m

29%

Other

€3.5m

€3.1m

71%

Total Compensation

€4.9m

€4.5m

100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. It's interesting to note that GEA Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
XTRA:G1A CEO Compensation April 24th 2024

A Look at GEA Group Aktiengesellschaft's Growth Numbers

Over the past three years, GEA Group Aktiengesellschaft has seen its earnings per share (EPS) grow by 56% per year. In the last year, its revenue is up 4.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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.