Shareholders Will Probably Not Have Any Issues With Deutsche Beteiligungs AG's (ETR:DBAN) CEO Compensation

Performance at Deutsche Beteiligungs AG (ETR:DBAN) has been reasonably good and CEO Torsten Grede has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17 February 2022. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Deutsche Beteiligungs

How Does Total Compensation For Torsten Grede Compare With Other Companies In The Industry?

At the time of writing, our data shows that Deutsche Beteiligungs AG has a market capitalization of €700m, and reported total annual CEO compensation of €1.3m for the year to September 2021. That's a notable increase of 30% on last year. In particular, the salary of €640.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from €350m to €1.4b, we found that the median CEO total compensation was €1.2m. This suggests that Deutsche Beteiligungs remunerates its CEO largely in line with the industry average.

Component	2021	2020	Proportion (2021)
Salary	€640k	€640k	51%
Other	€613k	€324k	49%
Total Compensation	€1.3m	€964k	100%

On an industry level, roughly 38% of total compensation represents salary and 62% is other remuneration. Deutsche Beteiligungs is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Deutsche Beteiligungs AG's Growth Numbers

Deutsche Beteiligungs AG's earnings per share (EPS) grew 71% per year over the last three years. Its revenue is up 1,672% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Deutsche Beteiligungs AG Been A Good Investment?

With a total shareholder return of 24% over three years, Deutsche Beteiligungs AG shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Deutsche Beteiligungs you should be aware of, and 2 of them are a bit unpleasant.

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.