We Think Some Shareholders May Hesitate To Increase Delivery Hero SE's (ETR:DHER) CEO Compensation

Key Insights

• Delivery Hero's Annual General Meeting to take place on 19th of June
• CEO L. Oestberg's total compensation includes salary of €350.0k
• The overall pay is 55% above the industry average
• Over the past three years, Delivery Hero's EPS fell by 10% and over the past three years, the total loss to shareholders 73%

The underwhelming share price performance of Delivery Hero SE (ETR:DHER) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 19th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for Delivery Hero

How Does Total Compensation For L. Oestberg Compare With Other Companies In The Industry?

At the time of writing, our data shows that Delivery Hero SE has a market capitalization of €7.9b, and reported total annual CEO compensation of €4.5m for the year to December 2023. This was the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €350k.

For comparison, other companies in the German Hospitality industry with market capitalizations ranging between €3.7b and €11b had a median total CEO compensation of €2.9m. Accordingly, our analysis reveals that Delivery Hero SE pays L. Oestberg north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	€350k	€350k	8%
Other	€4.2m	€4.2m	92%
Total Compensation	€4.5m	€4.5m	100%

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. Delivery Hero pays a modest slice of remuneration through salary, as compared 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.

Delivery Hero SE's Growth

Over the last three years, Delivery Hero SE has shrunk its earnings per share by 10% per year. In the last year, its revenue is up 16%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Delivery Hero SE Been A Good Investment?

The return of -73% over three years would not have pleased Delivery Hero SE shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Delivery Hero (1 is concerning!) that you should be aware of before investing here.

Switching gears from Delivery Hero, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.