A Look At AGRANA Beteiligungs-Aktiengesellschaft's (VIE:AGR) CEO Remuneration

This article will reflect on the compensation paid to Johann Marihart who has served as CEO of AGRANA Beteiligungs-Aktiengesellschaft (VIE:AGR) since 1992. This analysis will also assess whether AGRANA Beteiligungs-Aktiengesellschaft pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for AGRANA Beteiligungs-Aktiengesellschaft

How Does Total Compensation For Johann Marihart Compare With Other Companies In The Industry?

According to our data, AGRANA Beteiligungs-Aktiengesellschaft has a market capitalization of €1.1b, and paid its CEO total annual compensation worth €1.6m over the year to February 2020. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €713k.

In comparison with other companies in the industry with market capitalizations ranging from €842m to €2.7b, the reported median CEO total compensation was €1.2m. Accordingly, our analysis reveals that AGRANA Beteiligungs-Aktiengesellschaft pays Johann Marihart north of the industry median.

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. It's interesting to note that AGRANA Beteiligungs-Aktiengesellschaft allocates a smaller portion of compensation to salary in comparison to the broader industry. 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 AGRANA Beteiligungs-Aktiengesellschaft's Growth Numbers

AGRANA Beteiligungs-Aktiengesellschaft has reduced its earnings per share by 30% a year over the last three years. In the last year, its revenue is up 1.8%.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has AGRANA Beteiligungs-Aktiengesellschaft Been A Good Investment?

Since shareholders would have lost about 27% over three years, some AGRANA Beteiligungs-Aktiengesellschaft investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Johann is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. Arguably worse, we've been waiting for positive EPS growth for the last three years. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for AGRANA Beteiligungs-Aktiengesellschaft 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.

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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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