Increases to CEO Compensation Might Be Put On Hold For Now at CA Immobilien Anlagen AG (VIE:CAI)

Key Insights

• CA Immobilien Anlagen will host its Annual General Meeting on 5th of May
• Total pay for CEO Keegan Viscius includes €575.0k salary
• The overall pay is 41% above the industry average
• CA Immobilien Anlagen's EPS declined by 110% over the past three years while total shareholder return over the past three years was 4.1%

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The anaemic share price growth at CA Immobilien Anlagen AG (VIE:CAI) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 5th of May. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

See our latest analysis for CA Immobilien Anlagen

How Does Total Compensation For Keegan Viscius Compare With Other Companies In The Industry?

At the time of writing, our data shows that CA Immobilien Anlagen AG has a market capitalization of €2.3b, and reported total annual CEO compensation of €1.8m for the year to December 2024. That's a slight decrease of 3.8% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at €575k.

On comparing similar companies from the Austria Real Estate industry with market caps ranging from €1.8b to €5.6b, we found that the median CEO total compensation was €1.2m. This suggests that Keegan Viscius is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€575k	€525k	33%
Other	€1.2m	€1.3m	67%
Total Compensation	€1.8m	€1.8m	100%

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. CA Immobilien Anlagen 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.

A Look at CA Immobilien Anlagen AG's Growth Numbers

CA Immobilien Anlagen AG has reduced its earnings per share by 110% a year over the last three years. Its revenue is down 18% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CA Immobilien Anlagen AG Been A Good Investment?

CA Immobilien Anlagen AG has not done too badly by shareholders, with a total return of 4.1%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

While it's true that the share price growth hasn't been bad, it's hard to overlook the lack of earnings growth and this makes us question whether there will be any strong catalyst for the stock to improve. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for CA Immobilien Anlagen you should be aware of, and 1 of them is a bit unpleasant.

Important note: CA Immobilien Anlagen is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.