This Is Why Traton SE's (ETR:8TRA) CEO Compensation Looks Appropriate

Key Insights

• Traton's Annual General Meeting to take place on 13th of June
• CEO Christian Levin's total compensation includes salary of €1.22m
• The total compensation is similar to the average for the industry
• Traton's EPS grew by 70% over the past three years while total shareholder return over the past three years was 31%

CEO Christian Levin has done a decent job of delivering relatively good performance at Traton SE (ETR:8TRA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13th of June. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Traton

How Does Total Compensation For Christian Levin Compare With Other Companies In The Industry?

According to our data, Traton SE has a market capitalization of €17b, and paid its CEO total annual compensation worth €2.2m over the year to December 2023. That's a notable increase of 16% on last year. In particular, the salary of €1.22m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the German Machinery industry with market capitalizations above €7.3b, reported a median total CEO compensation of €3.1m. So it looks like Traton compensates Christian Levin in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	€1.2m	€1.2m	56%
Other	€973k	€668k	44%
Total Compensation	€2.2m	€1.9m	100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. It's interesting to note that Traton pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Traton SE's Growth Numbers

Traton SE's earnings per share (EPS) grew 70% per year over the last three years. It achieved revenue growth of 10% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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?

Traton SE has served shareholders reasonably well, with a total return of 31% over three years. 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Traton you should be aware of, and 1 of them is significant.

Switching gears from Traton, 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.