Here's Why It's Unlikely That Mayr-Melnhof Karton AG's (VIE:MMK) CEO Will See A Pay Rise This Year

Key Insights

• Mayr-Melnhof Karton will host its Annual General Meeting on 30th of April
• CEO Peter Oswald's total compensation includes salary of €1.28m
• The overall pay is 401% above the industry average
• Mayr-Melnhof Karton's EPS declined by 17% over the past three years while total shareholder loss over the past three years was 51%

Our free stock report includes 1 warning sign investors should be aware of before investing in Mayr-Melnhof Karton. Read for free now.

The results at Mayr-Melnhof Karton AG (VIE:MMK) have been quite disappointing recently and CEO Peter Oswald bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 30th of April. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Mayr-Melnhof Karton

Comparing Mayr-Melnhof Karton AG's CEO Compensation With The Industry

Our data indicates that Mayr-Melnhof Karton AG has a market capitalization of €1.5b, and total annual CEO compensation was reported as €4.7m for the year to December 2024. Notably, that's an increase of 20% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.3m.

On comparing similar companies from the Austria Packaging industry with market caps ranging from €875m to €2.8b, we found that the median CEO total compensation was €934k. This suggests that Peter Oswald is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€1.3m	€1.3m	27%
Other	€3.4m	€2.6m	73%
Total Compensation	€4.7m	€3.9m	100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. In Mayr-Melnhof Karton's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Mayr-Melnhof Karton AG's Growth Numbers

Over the last three years, Mayr-Melnhof Karton AG has shrunk its earnings per share by 17% per year. In the last year, its revenue is down 2.0%.

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. 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 Mayr-Melnhof Karton AG Been A Good Investment?

The return of -51% over three years would not have pleased Mayr-Melnhof Karton AG shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Mayr-Melnhof Karton that investors should be aware of in a dynamic business environment.

Switching gears from Mayr-Melnhof Karton, 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.