Most Shareholders Will Probably Find That The Compensation For technotrans SE's (ETR:TTR1) CEO Is Reasonable

Key Insights

• technotrans will host its Annual General Meeting on 16th of May
• Total pay for CEO Michael Finger includes €360.0k salary
• Total compensation is 42% below industry average
• Over the past three years, technotrans' EPS grew by 11% and over the past three years, the total loss to shareholders 11%

We've discovered 1 warning sign about technotrans. View them for free.

The performance at technotrans SE (ETR:TTR1) has been rather lacklustre of late and shareholders may be wondering what CEO Michael Finger is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 16th of May. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for technotrans

How Does Total Compensation For Michael Finger Compare With Other Companies In The Industry?

According to our data, technotrans SE has a market capitalization of €144m, and paid its CEO total annual compensation worth €432k over the year to December 2024. We note that's a decrease of 17% compared to last year. In particular, the salary of €360.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the German Machinery industry with market capitalizations ranging between €89m and €355m had a median total CEO compensation of €750k. In other words, technotrans pays its CEO lower than the industry median. Moreover, Michael Finger also holds €239k worth of technotrans stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€360k	€330k	83%
Other	€72k	€193k	17%
Total Compensation	€432k	€523k	100%

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. According to our research, technotrans has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

technotrans SE's Growth

Over the past three years, technotrans SE has seen its earnings per share (EPS) grow by 11% per year. Its revenue is down 3.1% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has technotrans SE Been A Good Investment?

With a three year total loss of 11% for the shareholders, technotrans SE would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The uninspiring share price returns contrasts with the strong EPS growth, suggesting that there may be other factors at play causing it to diverge from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for technotrans that investors should think about before committing capital to this stock.

Important note: technotrans 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.