We Take A Look At Why HOCHTIEF Aktiengesellschaft's (ETR:HOT) CEO Has Earned Their Pay Packet

Key Insights

• HOCHTIEF will host its Annual General Meeting on 29th of April
• Salary of €517.0k is part of CEO Juan Cases's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, HOCHTIEF's EPS grew by 49% and over the past three years, the total shareholder return was 209%

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The performance at HOCHTIEF Aktiengesellschaft (ETR:HOT) has been quite strong recently and CEO Juan Cases has played a role in it. Coming up to the next AGM on 29th of April, 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 HOCHTIEF

Comparing HOCHTIEF Aktiengesellschaft's CEO Compensation With The Industry

According to our data, HOCHTIEF Aktiengesellschaft has a market capitalization of €12b, and paid its CEO total annual compensation worth €3.7m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at €517k.

For comparison, other companies in the Germany Construction industry with market capitalizations above €6.9b, reported a median total CEO compensation of €4.8m. This suggests that HOCHTIEF remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	€517k	€499k	14%
Other	€3.2m	€3.1m	86%
Total Compensation	€3.7m	€3.6m	100%

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. It's interesting to note that HOCHTIEF allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at HOCHTIEF Aktiengesellschaft's Growth Numbers

HOCHTIEF Aktiengesellschaft has seen its earnings per share (EPS) increase by 49% a year over the past three years. In the last year, its revenue is up 20%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 HOCHTIEF Aktiengesellschaft Been A Good Investment?

Boasting a total shareholder return of 209% over three years, HOCHTIEF Aktiengesellschaft 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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 3 warning signs for HOCHTIEF (1 is significant!) 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.