We Think Shareholders May Want To Consider A Review Of Laiqon AG's (ETR:LQAG) CEO Compensation Package

Key Insights

• Laiqon's Annual General Meeting to take place on 28th of August
• Total pay for CEO Achim Plate includes €396.0k salary
• The overall pay is 180% above the industry average
• Laiqon's EPS declined by 42% over the past three years while total shareholder loss over the past three years was 13%

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The results at Laiqon AG (ETR:LQAG) have been quite disappointing recently and CEO Achim Plate bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 28th of August. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Laiqon

How Does Total Compensation For Achim Plate Compare With Other Companies In The Industry?

According to our data, Laiqon AG has a market capitalization of €114m, and paid its CEO total annual compensation worth €582k over the year to December 2024. That's a notable increase of 20% on last year. In particular, the salary of €396.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the German Capital Markets industry with market capitalizations under €172m, the reported median total CEO compensation was €208k. This suggests that Achim Plate is paid more than the median for the industry. What's more, Achim Plate holds €10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Although there is a difference in how total compensation is set, Laiqon more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Laiqon AG's Growth Numbers

Laiqon AG has reduced its earnings per share by 42% a year over the last three years. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Laiqon AG Been A Good Investment?

Given the total shareholder loss of 13% over three years, many shareholders in Laiqon AG are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Laiqon.

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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.