Yahoo Finance

Key Insights

• RHI Magnesita to hold its Annual General Meeting on 2nd of May

• Total pay for CEO Stefan Borgas includes €1.14m salary

• The overall pay is 93% above the industry average

• Over the past three years, RHI Magnesita's EPS grew by 90% and over the past three years, the total loss to shareholders 12%

In the past three years, the share price of RHI Magnesita N.V. (LON:RHIM) has struggled to generate growth for its shareholders. 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 2nd of May could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for RHI Magnesita

Comparing RHI Magnesita N.V.'s CEO Compensation With The Industry

At the time of writing, our data shows that RHI Magnesita N.V. has a market capitalization of UK£1.7b, and reported total annual CEO compensation of €4.0m for the year to December 2023. That's a notable increase of 21% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.1m.

On comparing similar companies from the British Basic Materials industry with market caps ranging from UK£799m to UK£2.6b, we found that the median CEO total compensation was €2.1m. Accordingly, our analysis reveals that RHI Magnesita N.V. pays Stefan Borgas north of the industry median. Moreover, Stefan Borgas also holds UK£2.6m worth of RHI Magnesita stock directly under their own name.

On an industry level, roughly 36% of total compensation represents salary and 64% is other remuneration. It's interesting to note that RHI Magnesita 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.

A Look at RHI Magnesita N.V.'s Growth Numbers

RHI Magnesita N.V.'s earnings per share (EPS) grew 90% per year over the last three years. In the last year, its revenue is up 7.7%.

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..