A Look At Hawesko Holding's (ETR:HAW) CEO Remuneration

Thorsten Hermelink has been the CEO of Hawesko Holding AG (ETR:HAW) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Hawesko Holding

How Does Total Compensation For Thorsten Hermelink Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hawesko Holding AG has a market capitalization of €401m, and reported total annual CEO compensation of €845k for the year to December 2019. Notably, that's an increase of 11% over the year before. We note that the salary portion, which stands at €500.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between €165m and €658m had a median total CEO compensation of €750k. From this we gather that Thorsten Hermelink is paid around the median for CEOs in the industry.

On an industry level, roughly 39% of total compensation represents salary and 61% is other remuneration. According to our research, Hawesko Holding 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.

A Look at Hawesko Holding AG's Growth Numbers

Hawesko Holding AG has seen its earnings per share (EPS) increase by 13% a year over the past three years. In the last year, its revenue is up 8.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Hawesko Holding AG Been A Good Investment?

Since shareholders would have lost about 2.3% over three years, some Hawesko Holding AG investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Hawesko Holding AG is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Thorsten is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

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've identified 1 warning sign for Hawesko Holding that investors should be aware of in a dynamic business environment.

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This article by Simply Wall St is general in nature. 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.
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