Shareholders May Be More Conservative With JOST Werke SE's (ETR:JST) CEO Compensation For Now

Key Insights

• JOST Werke will host its Annual General Meeting on 8th of May
• Salary of €746.0k is part of CEO Joachim Durr's total remuneration
• The total compensation is 82% higher than the average for the industry
• JOST Werke's total shareholder return over the past three years was 48% while its EPS grew by 6.2% over the past three years

We've discovered 2 warning signs about JOST Werke. View them for free.

Under the guidance of CEO Joachim Durr, JOST Werke SE (ETR:JST) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 8th of May. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for JOST Werke

Comparing JOST Werke SE's CEO Compensation With The Industry

According to our data, JOST Werke SE has a market capitalization of €738m, and paid its CEO total annual compensation worth €1.9m over the year to December 2024. That's a notable increase of 10% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €746k.

On comparing similar companies from the German Machinery industry with market caps ranging from €354m to €1.4b, we found that the median CEO total compensation was €1.1m. Accordingly, our analysis reveals that JOST Werke SE pays Joachim Durr north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	€746k	€724k	38%
Other	€1.2m	€1.0m	62%
Total Compensation	€1.9m	€1.8m	100%

Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. Our data reveals that JOST Werke allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at JOST Werke SE's Growth Numbers

JOST Werke SE's earnings per share (EPS) grew 6.2% per year over the last three years. Its revenue is down 14% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 JOST Werke SE Been A Good Investment?

We think that the total shareholder return of 48%, over three years, would leave most JOST Werke SE shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for JOST Werke that investors should be aware of in a dynamic business environment.

Switching gears from JOST Werke, 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.

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.