We Think The Compensation For Palfinger AG's (VIE:PAL) CEO Looks About Right

Under the guidance of CEO Andreas Klauser, Palfinger AG (VIE:PAL) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 07 April 2021. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for Palfinger

How Does Total Compensation For Andreas Klauser Compare With Other Companies In The Industry?

At the time of writing, our data shows that Palfinger AG has a market capitalization of €1.3b, and reported total annual CEO compensation of €853k for the year to December 2020. Notably, that's a decrease of 33% over the year before. We note that the salary portion, which stands at €622.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between €852m and €2.7b had a median total CEO compensation of €1.0m. This suggests that Palfinger remunerates its CEO largely in line with the industry average.

Component	2020	2019	Proportion (2020)
Salary	€622k	€638k	73%
Other	€231k	€642k	27%
Total Compensation	€853k	€1.3m	100%

Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. Palfinger is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Palfinger AG's Growth Numbers

Palfinger AG has seen its earnings per share (EPS) increase by 35% a year over the past three years. Its revenue is down 13% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Palfinger AG Been A Good Investment?

With a total shareholder return of 6.6% over three years, Palfinger AG has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

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 3 warning signs for Palfinger that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. 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.
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