Most Shareholders Will Probably Agree With Nordex SE's (ETR:NDX1) CEO Compensation

Key Insights

• Nordex's Annual General Meeting to take place on 6th of May
• Salary of €660.0k is part of CEO Jose Blanco Diéguez's total remuneration
• The overall pay is comparable to the industry average
• Nordex's EPS grew by 77% over the past three years while total shareholder return over the past three years was 27%

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Under the guidance of CEO Jose Blanco Diéguez, Nordex SE (ETR:NDX1) has performed reasonably well recently. As shareholders go into the upcoming AGM on 6th 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 Nordex

Comparing Nordex SE's CEO Compensation With The Industry

According to our data, Nordex SE has a market capitalization of €3.9b, and paid its CEO total annual compensation worth €1.8m over the year to December 2024. Notably, that's an increase of 48% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €660k.

In comparison with other companies in the German Electrical industry with market capitalizations ranging from €1.8b to €5.6b, the reported median CEO total compensation was €1.8m. This suggests that Nordex remunerates its CEO largely in line with the industry average.

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. It's interesting to note that Nordex 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 Nordex SE's Growth Numbers

Nordex SE's earnings per share (EPS) grew 77% per year over the last three years. It achieved revenue growth of 8.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Nordex SE Been A Good Investment?

With a total shareholder return of 27% over three years, Nordex SE shareholders would, in general, 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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Nordex that investors should be aware of in a dynamic business environment.

Switching gears from Nordex, 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.