Shareholders May Not Be So Generous With Amadeus FiRe AG's (ETR:AAD) CEO Compensation And Here's Why

Key Insights

• Amadeus FiRe will host its Annual General Meeting on 15th of May
• Total pay for CEO Robert Von Wulfing includes €420.0k salary
• Total compensation is 40% above industry average
• Amadeus FiRe's three-year loss to shareholders was 18% while its EPS grew by 24% over the past three years

The underwhelming share price performance of Amadeus FiRe AG (ETR:AAD) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 15th of May. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Amadeus FiRe

How Does Total Compensation For Robert Von Wulfing Compare With Other Companies In The Industry?

Our data indicates that Amadeus FiRe AG has a market capitalization of €609m, and total annual CEO compensation was reported as €1.2m for the year to December 2023. That's a modest increase of 7.1% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €420k.

On comparing similar companies from the Germany Professional Services industry with market caps ranging from €372m to €1.5b, we found that the median CEO total compensation was €855k. This suggests that Robert Von Wulfing is paid more than the median for the industry. What's more, Robert Von Wulfing holds €269k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	€420k	€420k	35%
Other	€778k	€699k	65%
Total Compensation	€1.2m	€1.1m	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. It's interesting to note that Amadeus FiRe allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Amadeus FiRe AG's Growth

Over the past three years, Amadeus FiRe AG has seen its earnings per share (EPS) grow by 24% per year. It achieved revenue growth of 7.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Amadeus FiRe AG Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Amadeus FiRe AG investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Amadeus FiRe that investors should be aware of in a dynamic business environment.

Important note: Amadeus FiRe 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.