We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Vossloh AG's (ETR:VOS) CEO For Now

Key Insights

• Vossloh will host its Annual General Meeting on 7th of May
• CEO Oliver Schuster's total compensation includes salary of €600.0k
• The overall pay is 43% above the industry average
• Over the past three years, Vossloh's EPS grew by 40% and over the past three years, the total shareholder return was 107%

Our free stock report includes 1 warning sign investors should be aware of before investing in Vossloh. Read for free now.

Under the guidance of CEO Oliver Schuster, Vossloh AG (ETR:VOS) 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 7th of May. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Vossloh

Comparing Vossloh AG's CEO Compensation With The Industry

At the time of writing, our data shows that Vossloh AG has a market capitalization of €1.3b, and reported total annual CEO compensation of €2.1m for the year to December 2024. We note that's an increase of 8.8% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €600k.

For comparison, other companies in the German Machinery industry with market capitalizations ranging between €882m and €2.8b had a median total CEO compensation of €1.4m. This suggests that Oliver Schuster is paid more than the median for the industry.

Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. It's interesting to note that Vossloh allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Vossloh AG's Growth Numbers

Vossloh AG has seen its earnings per share (EPS) increase by 40% a year over the past three years. Its revenue is down 2.8% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vossloh AG Been A Good Investment?

Boasting a total shareholder return of 107% over three years, Vossloh AG has done well by shareholders. 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is 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. That's why we did some digging and identified 1 warning sign for Vossloh that you should be aware of before investing.

Important note: Vossloh 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.