It Looks Like INDUS Holding AG's (ETR:INH) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• INDUS Holding to hold its Annual General Meeting on 27th of May
• Salary of €575.0k is part of CEO Johannes Schmidt's total remuneration
• Total compensation is 53% above industry average
• INDUS Holding's EPS declined by 16% over the past three years while total shareholder loss over the past three years was 8.2%

We've discovered 2 warning signs about INDUS Holding. View them for free.

Shareholders will probably not be too impressed with the underwhelming results at INDUS Holding AG (ETR:INH) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 27th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for INDUS Holding

How Does Total Compensation For Johannes Schmidt Compare With Other Companies In The Industry?

At the time of writing, our data shows that INDUS Holding AG has a market capitalization of €561m, and reported total annual CEO compensation of €883k for the year to December 2024. That's a fairly small increase of 4.1% over the previous year. We note that the salary portion, which stands at €575.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Germany Industrials industry with market capitalizations ranging between €355m and €1.4b had a median total CEO compensation of €577k. Accordingly, our analysis reveals that INDUS Holding AG pays Johannes Schmidt north of the industry median.

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. INDUS Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

INDUS Holding AG's Growth

INDUS Holding AG has reduced its earnings per share by 16% a year over the last three years. In the last year, its revenue is down 2.8%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has INDUS Holding AG Been A Good Investment?

Since shareholders would have lost about 8.2% over three years, some INDUS Holding AG investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for INDUS Holding you should be aware of, and 1 of them shouldn't be ignored.

Important note: INDUS Holding 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.

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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.