Does AGRANA Beteiligungs-Aktiengesellschaft's (VIE:AGR) CEO Salary Compare Well With Industry Peers?

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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AGRANA Beteiligungs-Aktiengesellschaft.

Check out our latest analysis for AGRANA Beteiligungs-Aktiengesellschaft

Comparing AGRANA Beteiligungs-Aktiengesellschaft's CEO Compensation With 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. We think total compensation is more important but our data shows that the CEO salary is lower, at €713k.

In comparison with other companies in the industry with market capitalizations ranging from €817m to €2.6b, the reported median CEO total compensation was €1.1m. This suggests that Johann Marihart is paid more than the median for the industry.

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. AGRANA Beteiligungs-Aktiengesellschaft sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

AGRANA Beteiligungs-Aktiengesellschaft's Growth

Over the last three years, AGRANA Beteiligungs-Aktiengesellschaft has shrunk its earnings per share by 29% per year. It achieved revenue growth of 4.4% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. 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 21% over three years, some AGRANA Beteiligungs-Aktiengesellschaft investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, AGRANA Beteiligungs-Aktiengesellschaft pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, EPS growth has also been negative during this period. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for AGRANA Beteiligungs-Aktiengesellschaft that investors should think about before committing capital to this stock.

Switching gears from AGRANA Beteiligungs-Aktiengesellschaft, 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. 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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