Shareholders Would Not Be Objecting To Traton SE's (ETR:8TRA) CEO Compensation And Here's Why
Key Insights
- Traton to hold its Annual General Meeting on 14th of May
- Total pay for CEO Christian Levin includes €1.22m salary
- Total compensation is similar to the industry average
- Traton's EPS grew by 50% over the past three years while total shareholder return over the past three years was 102%
We have been pretty impressed with the performance at Traton SE (ETR:8TRA) recently and CEO Christian Levin deserves a mention for their role in it. Coming up to the next AGM on 14th of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders 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.
View our latest analysis for Traton
Comparing Traton SE's CEO Compensation With The Industry
According to our data, Traton SE has a market capitalization of €14b, and paid its CEO total annual compensation worth €2.9m over the year to December 2024. Notably, that's an increase of 32% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.2m.
On comparing similar companies in the German Machinery industry with market capitalizations above €7.1b, we found that the median total CEO compensation was €2.9m. So it looks like Traton compensates Christian Levin in line with the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €1.2m | €1.2m | 42% |
| Other | €1.7m | €973k | 58% |
| Total Compensation | €2.9m | €2.2m | 100% |
On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. Traton is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Traton SE's Growth Numbers
Over the past three years, Traton SE has seen its earnings per share (EPS) grow by 50% per year. In the last year, its revenue is down 2.5%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Traton SE Been A Good Investment?
We think that the total shareholder return of 102%, over three years, would leave most Traton SE shareholders smiling. 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.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Traton (1 is a bit unpleasant!) that you should be aware of before investing here.
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.