The decent performance at EVN AG (VIE:EVN) recently will please most shareholders as they go into the AGM coming up on 02 February 2023. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
Check out our latest analysis for EVN
How Does Total Compensation For Stefan Szyszkowitz Compare With Other Companies In The Industry?
According to our data, EVN AG has a market capitalization of €3.4b, and paid its CEO total annual compensation worth €645k over the year to September 2022. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at €446.9k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Austria Electric Utilities industry with market capitalizations ranging between €1.8b and €5.9b had a median total CEO compensation of €2.2m. Accordingly, EVN pays its CEO under the industry median.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | €447k | €435k | 69% |
| Other | €198k | €198k | 31% |
| Total Compensation | €645k | €633k | 100% |
On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. EVN pays out 69% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at EVN AG's Growth Numbers
EVN AG has reduced its earnings per share by 12% a year over the last three years. It achieved revenue growth of 69% over the last year.
The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 EVN AG Been A Good Investment?
With a total shareholder return of 11% over three years, EVN AG shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for EVN that investors should look into moving forward.
Important note: EVN 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.
Valuation is complex, but we're here to simplify it.
Discover if EVN might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About WBAG:EVN
EVN
Provides energy and environmental services for private and business customers, and municipalities.
Very undervalued established dividend payer.
