bet-at-home.com AG's (ETR:ACX) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• bet-at-home.com will host its Annual General Meeting on 6th of June
• Salary of €450.0k is part of CEO Marco Falchetto's total remuneration
• The total compensation is 424% higher than the average for the industry
• Over the past three years, bet-at-home.com's EPS fell by 115% and over the past three years, the total loss to shareholders 76%

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Shareholders of bet-at-home.com AG (ETR:ACX) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 6th of June and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for bet-at-home.com

Comparing bet-at-home.com AG's CEO Compensation With The Industry

At the time of writing, our data shows that bet-at-home.com AG has a market capitalization of €21m, and reported total annual CEO compensation of €853k for the year to December 2024. Notably, that's an increase of 51% over the year before. We note that the salary of €450.0k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the German Hospitality industry with market capitalizations below €176m, reported a median total CEO compensation of €163k. Accordingly, our analysis reveals that bet-at-home.com AG pays Marco Falchetto north of the industry median.

On an industry level, around 41% of total compensation represents salary and 59% is other remuneration. According to our research, bet-at-home.com has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

bet-at-home.com AG's Growth

bet-at-home.com AG has reduced its earnings per share by 115% a year over the last three years. In the last year, its revenue is up 20%.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has bet-at-home.com AG Been A Good Investment?

Few bet-at-home.com AG shareholders would feel satisfied with the return of -76% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In 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 is in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for bet-at-home.com 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.