We Think Shareholders May Want To Consider A Review Of Amadeus FiRe AG's (ETR:AAD) CEO Compensation Package
Key Insights
- Amadeus FiRe's Annual General Meeting to take place on 22nd of May
- CEO Robert Von Wulfing's total compensation includes salary of €420.0k
- Total compensation is similar to the industry average
- Amadeus FiRe's three-year loss to shareholders was 33% while its EPS was down 11% over the past three years
The results at Amadeus FiRe AG (ETR:AAD) have been quite disappointing recently and CEO Robert Von Wulfing bears some responsibility for this. At the upcoming AGM on 22nd of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View 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 €426m, and total annual CEO compensation was reported as €823k for the year to December 2024. That's a notable decrease of 31% on last year. In particular, the salary of €420.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the Germany Professional Services industry with market capitalizations between €179m and €715m, we discovered that the median CEO total compensation of that group was €727k. This suggests that Amadeus FiRe remunerates its CEO largely in line with the industry average. What's more, Robert Von Wulfing holds €220k worth of shares in the company in their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €420k | €420k | 51% |
| Other | €403k | €778k | 49% |
| Total Compensation | €823k | €1.2m | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. Amadeus FiRe sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Amadeus FiRe AG's Growth Numbers
Over the last three years, Amadeus FiRe AG has shrunk its earnings per share by 11% per year. Its revenue is down 5.8% over the previous year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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?
The return of -33% over three years would not have pleased Amadeus FiRe AG shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Amadeus FiRe that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.