We Think Some Shareholders May Hesitate To Increase ZEAL Network SE's (ETR:TIMA) CEO Compensation

Key Insights

• ZEAL Network to hold its Annual General Meeting on 9th of May
• CEO Helmut Becker's total compensation includes salary of €606.0k
• The total compensation is 51% higher than the average for the industry
• Over the past three years, ZEAL Network's EPS grew by 105% and over the past three years, the total shareholder return was 46%

Performance at ZEAL Network SE (ETR:TIMA) has been reasonably good and CEO Helmut Becker has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for ZEAL Network

Comparing ZEAL Network SE's CEO Compensation With The Industry

According to our data, ZEAL Network SE has a market capitalization of €802m, and paid its CEO total annual compensation worth €1.8m over the year to December 2022. Notably, that's a decrease of 10% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €606k.

In comparison with other companies in the German Hospitality industry with market capitalizations ranging from €365m to €1.5b, the reported median CEO total compensation was €1.2m. Accordingly, our analysis reveals that ZEAL Network SE pays Helmut Becker north of the industry median.

Component	2022	2021	Proportion (2022)
Salary	€606k	€606k	33%
Other	€1.2m	€1.4m	67%
Total Compensation	€1.8m	€2.0m	100%

On an industry level, around 55% of total compensation represents salary and 45% is other remuneration. In ZEAL Network's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ZEAL Network SE's Growth

ZEAL Network SE has seen its earnings per share (EPS) increase by 105% a year over the past three years. In the last year, its revenue is up 26%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ZEAL Network SE Been A Good Investment?

Boasting a total shareholder return of 46% over three years, ZEAL Network SE has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 1 warning sign for ZEAL Network that investors should look into moving forward.

Switching gears from ZEAL Network, 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.