We Take A Look At Why PORR AG's (VIE:POS) CEO Has Earned Their Pay Packet

Key Insights

• PORR will host its Annual General Meeting on 29th of April
• CEO Karl-Heinz Strauss' total compensation includes salary of €1.05m
• The total compensation is similar to the average for the industry
• PORR's total shareholder return over the past three years was 176% while its EPS grew by 26% over the past three years

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It would be hard to discount the role that CEO Karl-Heinz Strauss has played in delivering the impressive results at PORR AG (VIE:POS) recently. Coming up to the next AGM on 29th of April, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for PORR

Comparing PORR AG's CEO Compensation With The Industry

Our data indicates that PORR AG has a market capitalization of €1.1b, and total annual CEO compensation was reported as €2.2m for the year to December 2024. Notably, that's an increase of 23% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.1m.

On examining similar-sized companies in the Austria Construction industry with market capitalizations between €867m and €2.8b, we discovered that the median CEO total compensation of that group was €2.5m. From this we gather that Karl-Heinz Strauss is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	€1.1m	€850k	48%
Other	€1.1m	€928k	52%
Total Compensation	€2.2m	€1.8m	100%

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. PORR is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at PORR AG's Growth Numbers

Over the past three years, PORR AG has seen its earnings per share (EPS) grow by 26% per year. It achieved revenue growth of 2.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 PORR AG Been A Good Investment?

Most shareholders would probably be pleased with PORR AG for providing a total return of 176% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for PORR that you should be aware of before investing.

Switching gears from PORR, 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.