It's Probably Less Likely That FACC AG's (VIE:FACC) CEO Will See A Huge Pay Rise This Year

Key Insights

• FACC's Annual General Meeting to take place on 17th of May
• CEO Robert Machtlinger's total compensation includes salary of €440.0k
• The total compensation is similar to the average for the industry
• FACC's EPS grew by 106% over the past three years while total shareholder loss over the past three years was 25%

Shareholders of FACC AG (VIE:FACC) 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. These are some of the concerns that shareholders may want to bring up at the next AGM held on 17th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. 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 FACC

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

At the time of writing, our data shows that FACC AG has a market capitalization of €308m, and reported total annual CEO compensation of €636k for the year to December 2023. That's a notable increase of 8.2% on last year. Notably, the salary which is €440.0k, represents most of the total compensation being paid.

For comparison, other companies in the Austria Aerospace & Defense industry with market capitalizations ranging between €186m and €743m had a median total CEO compensation of €577k. So it looks like FACC compensates Robert Machtlinger in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	€440k	€418k	69%
Other	€196k	€170k	31%
Total Compensation	€636k	€588k	100%

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. FACC is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

FACC AG's Growth

Over the past three years, FACC AG has seen its earnings per share (EPS) grow by 106% per year. It achieved revenue growth of 21% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 FACC AG Been A Good Investment?

With a three year total loss of 25% for the shareholders, FACC AG would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for FACC you should be aware of, and 1 of them is concerning.

Switching gears from FACC, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.