Shareholders Will Most Likely Find Energiekontor AG's (ETR:EKT) CEO Compensation Acceptable

Key Insights

• Energiekontor will host its Annual General Meeting on 29th of May
• CEO Peter Szabo's total compensation includes salary of €325.0k
• The overall pay is comparable to the industry average
• Energiekontor's EPS grew by 61% over the past three years while total shareholder return over the past three years was 31%

Performance at Energiekontor AG (ETR:EKT) has been reasonably good and CEO Peter Szabo has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Energiekontor

Comparing Energiekontor AG's CEO Compensation With The Industry

According to our data, Energiekontor AG has a market capitalization of €997m, and paid its CEO total annual compensation worth €648k over the year to December 2023. That's a notable decrease of 13% on last year. Notably, the salary which is €325.0k, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the German Electrical industry with market caps ranging from €370m to €1.5b, we found that the median CEO total compensation was €757k. This suggests that Energiekontor remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	€325k	€325k	50%
Other	€323k	€423k	50%
Total Compensation	€648k	€748k	100%

Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. Our data reveals that Energiekontor allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Energiekontor AG's Growth Numbers

Over the past three years, Energiekontor AG has seen its earnings per share (EPS) grow by 61% per year. It achieved revenue growth of 29% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Energiekontor AG Been A Good Investment?

Energiekontor AG has generated a total shareholder return of 31% over three years, so most shareholders would 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...

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Energiekontor (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.

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.