Shareholders May Be More Conservative With FACC AG's (VIE:FACC) CEO Compensation For Now

Key Insights

• FACC will host its Annual General Meeting on 8th of May
• Total pay for CEO Robert Machtlinger includes €418.0k salary
• The total compensation is 31% higher than the average for the industry
• FACC's EPS declined by 10% over the past three years while total shareholder loss over the past three years was 1.0%

In the past three years, shareholders of FACC AG (VIE:FACC) have seen a loss on their investment. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 8th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for FACC

Comparing FACC AG's CEO Compensation With The Industry

Our data indicates that FACC AG has a market capitalization of €322m, and total annual CEO compensation was reported as €588k for the year to December 2022. That's slightly lower by 4.1% over the previous year. In particular, the salary of €418.0k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Austria Aerospace & Defense industry with market capitalizations between €182m and €726m, we discovered that the median CEO total compensation of that group was €449k. Accordingly, our analysis reveals that FACC AG pays Robert Machtlinger north of the industry median.

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. According to our research, FACC has allocated a higher percentage of pay to salary in comparison to the wider 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 last three years, FACC AG has shrunk its earnings per share by 10% per year. Its revenue is up 22% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has FACC AG Been A Good Investment?

Since shareholders would have lost about 1.0% over three years, some FACC AG investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In 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 is in line with their expectations.

So you may want to check if insiders are buying FACC shares with their own money (free access).

Important note: FACC 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.