It's Unlikely That Amadeus FiRe AG's (ETR:AAD) CEO Will See A Huge Pay Rise This Year

editorial-team@simplywallst.com (Simply Wall St)

Wed, May 8, 2024, 10:38 PM 4 min read

Amadeus FiRe to hold its Annual General Meeting on 15th of May
Total pay for CEO Robert Von Wulfing includes €420.0k salary
The total compensation is 40% higher than the average for the industry
Amadeus FiRe's three-year loss to shareholders was 18% while its EPS grew by 24% over the past three years

Shareholders of Amadeus FiRe AG (ETR:AAD) 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. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 15th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Amadeus FiRe

How Does Total Compensation For Robert Von Wulfing Compare With Other Companies In The Industry?

Our data indicates that Amadeus FiRe AG has a market capitalization of €609m, and total annual CEO compensation was reported as €1.2m for the year to December 2023. That's a fairly small increase of 7.1% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at €420k.

On comparing similar companies from the Germany Professional Services industry with market caps ranging from €372m to €1.5b, we found that the median CEO total compensation was €855k. This suggests that Robert Von Wulfing is paid more than the median for the industry. What's more, Robert Von Wulfing holds €269k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	€420k	€420k	35%
Other	€778k	€699k	65%
Total Compensation	€1.2m	€1.1m	100%

On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. Amadeus FiRe pays a modest slice of remuneration through salary, as compared 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:AAD CEO Compensation May 9th 2024

Amadeus FiRe AG's Growth

Amadeus FiRe AG has seen its earnings per share (EPS) increase by 24% a year over the past three years. In the last year, its revenue is up 7.4%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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.

Has Amadeus FiRe AG Been A Good Investment?

With a three year total loss of 18% for the shareholders, Amadeus FiRe AG would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Amadeus FiRe that you should be aware of before investing.

Important note: Amadeus FiRe is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.