It Looks Like Shareholders Would Probably Approve SAF-Holland SE's (ETR:SFQ) CEO Compensation Package

Key Insights

• SAF-Holland's Annual General Meeting to take place on 11th of June
• Salary of €795.0k is part of CEO Alexander Geis's total remuneration
• Total compensation is similar to the industry average
• SAF-Holland's total shareholder return over the past three years was 41% while its EPS grew by 76% over the past three years

We have been pretty impressed with the performance at SAF-Holland SE (ETR:SFQ) recently and CEO Alexander Geis deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 11th of June. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for SAF-Holland

Comparing SAF-Holland SE's CEO Compensation With The Industry

According to our data, SAF-Holland SE has a market capitalization of €798m, and paid its CEO total annual compensation worth €1.4m over the year to December 2023. Notably, that's an increase of 13% over the year before. We note that the salary of €795.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the German Auto Components industry with market capitalizations ranging from €368m to €1.5b, the reported median CEO total compensation was €1.4m. So it looks like SAF-Holland compensates Alexander Geis in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	€795k	€734k	56%
Other	€614k	€515k	44%
Total Compensation	€1.4m	€1.2m	100%

Speaking on an industry level, nearly 37% of total compensation represents salary, while the remainder of 63% is other remuneration. It's interesting to note that SAF-Holland pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

SAF-Holland SE's Growth

SAF-Holland SE's earnings per share (EPS) grew 76% per year over the last three years. In the last year, its revenue is up 27%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has SAF-Holland SE Been A Good Investment?

Boasting a total shareholder return of 41% over three years, SAF-Holland SE has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term 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 2 warning signs for SAF-Holland that investors should think about before committing capital to this stock.

Switching gears from SAF-Holland, 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.