It's Unlikely That Dürr Aktiengesellschaft's (ETR:DUE) CEO Will See A Huge Pay Rise This Year

Key Insights

• Dürr's Annual General Meeting to take place on 17th of May
• Salary of €1.00m is part of CEO Jochen Weyrauch's total remuneration
• The overall pay is 114% above the industry average
• Dürr's EPS grew by 65% over the past three years while total shareholder loss over the past three years was 22%

The underwhelming share price performance of Dürr Aktiengesellschaft (ETR:DUE) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 17th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Dürr

Comparing Dürr Aktiengesellschaft's CEO Compensation With The Industry

At the time of writing, our data shows that Dürr Aktiengesellschaft has a market capitalization of €1.7b, and reported total annual CEO compensation of €2.9m for the year to December 2023. That's a notable increase of 22% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.0m.

In comparison with other companies in the German Machinery industry with market capitalizations ranging from €928m to €3.0b, the reported median CEO total compensation was €1.3m. This suggests that Jochen Weyrauch is paid more than the median for the industry. Moreover, Jochen Weyrauch also holds €604k worth of Dürr stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€1.0m	€1.0m	35%
Other	€1.9m	€1.4m	65%
Total Compensation	€2.9m	€2.4m	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. Dürr pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Dürr Aktiengesellschaft's Growth

Dürr Aktiengesellschaft's earnings per share (EPS) grew 65% per year over the last three years. In the last year, its revenue is up 7.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Dürr Aktiengesellschaft Been A Good Investment?

Since shareholders would have lost about 22% over three years, some Dürr Aktiengesellschaft investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At 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 will likely improve performance in the future.

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 Dürr that investors should think about before committing capital to this stock.

Important note: Dürr 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.

Have 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.