It's Unlikely That UBM Development AG's (VIE:UBS) CEO Will See A Huge Pay Rise This Year

Key Insights

• UBM Development to hold its Annual General Meeting on 21st of May
• Salary of €640.0k is part of CEO Thomas Winkler's total remuneration
• The total compensation is 102% higher than the average for the industry
• UBM Development's EPS declined by 102% over the past three years while total shareholder loss over the past three years was 50%

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The underwhelming share price performance of UBM Development AG (VIE:UBS) in the past three years would have disappointed many shareholders. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. The AGM coming up on 21st of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

See our latest analysis for UBM Development

How Does Total Compensation For Thomas Winkler Compare With Other Companies In The Industry?

According to our data, UBM Development AG has a market capitalization of €145m, and paid its CEO total annual compensation worth €672k over the year to December 2024. That is, the compensation was roughly the same as last year. In particular, the salary of €640.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Austria Real Estate industry with market caps ranging from €89m to €357m, we found that the median CEO total compensation was €332k. This suggests that Thomas Winkler is paid more than the median for the industry. Moreover, Thomas Winkler also holds €1.5m worth of UBM Development stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€640k	€640k	95%
Other	€32k	€38k	5%
Total Compensation	€672k	€678k	100%

Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. UBM Development pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at UBM Development AG's Growth Numbers

Over the last three years, UBM Development AG has shrunk its earnings per share by 102% per year. It achieved revenue growth of 25% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has UBM Development AG Been A Good Investment?

The return of -50% over three years would not have pleased UBM Development AG shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Thomas receives almost all of their compensation through a salary. The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

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 1 warning sign for UBM Development that you should be aware of before investing.

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. 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.