Why We Think Palfinger AG's (VIE:PAL) CEO Compensation Is Not Excessive At All

Key Insights

• Palfinger to hold its Annual General Meeting on 3rd of April
• Salary of €806.0k is part of CEO Andreas Klauser's total remuneration
• Total compensation is similar to the industry average
• Palfinger's total shareholder return over the past three years was 42% while its EPS grew by 7.6% over the past three years

The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

Under the guidance of CEO Andreas Klauser, Palfinger AG (VIE:PAL) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of April. Here is our take on why we think the CEO compensation looks appropriate.

View 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 €1.0b, and reported total annual CEO compensation of €1.5m for the year to December 2024. Notably, that's an increase of 9.5% over the year before. In particular, the salary of €806.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Austria Machinery industry with market capitalizations between €372m and €1.5b, we discovered that the median CEO total compensation of that group was €1.3m. This suggests that Palfinger remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	€806k	€768k	55%
Other	€663k	€574k	45%
Total Compensation	€1.5m	€1.3m	100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. Although there is a difference in how total compensation is set, Palfinger more or less reflects the market in terms of setting the salary. 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.

A Look at Palfinger AG's Growth Numbers

Palfinger AG's earnings per share (EPS) grew 7.6% per year over the last three years. Its revenue is down 3.5% over the previous year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Palfinger AG Been A Good Investment?

Most shareholders would probably be pleased with Palfinger AG for providing a total return of 42% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

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. We did our research and spotted 2 warning signs for Palfinger that investors should look into moving forward.

Switching gears from Palfinger, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.