Zumtobel Group AG's (VIE:ZAG) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Zumtobel Group's Annual General Meeting to take place on 26th of September
• CEO Alfred Felder's total compensation includes salary of €700.0k
• The total compensation is 164% higher than the average for the industry
• Over the past three years, Zumtobel Group's EPS fell by 51% and over the past three years, the total loss to shareholders 24%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The results at Zumtobel Group AG (VIE:ZAG) have been quite disappointing recently and CEO Alfred Felder bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 26th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Zumtobel Group

Comparing Zumtobel Group AG's CEO Compensation With The Industry

At the time of writing, our data shows that Zumtobel Group AG has a market capitalization of €175m, and reported total annual CEO compensation of €1.5m for the year to April 2025. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €700k.

For comparison, other companies in the Austria Electrical industry with market capitalizations ranging between €85m and €340m had a median total CEO compensation of €572k. This suggests that Alfred Felder is paid more than the median for the industry.

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. There isn't a significant difference between Zumtobel Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Zumtobel Group AG's Growth

Over the last three years, Zumtobel Group AG has shrunk its earnings per share by 51% per year. Its revenue is down 4.9% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Zumtobel Group AG Been A Good Investment?

With a three year total loss of 24% for the shareholders, Zumtobel Group AG would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Zumtobel Group that investors should be aware of in a dynamic business environment.

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.

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.