Shareholders May Be More Conservative With MLP SE's (ETR:MLP) CEO Compensation For Now

Key Insights

• MLP's Annual General Meeting to take place on 25th of June
• Salary of €625.0k is part of CEO Uwe Schroeder-Wildberg's total remuneration
• The total compensation is 56% higher than the average for the industry
• MLP's EPS declined by 1.7% over the past three years while total shareholder return over the past three years was 67%

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The share price of MLP SE (ETR:MLP) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 25th of June. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

See our latest analysis for MLP

How Does Total Compensation For Uwe Schroeder-Wildberg Compare With Other Companies In The Industry?

Our data indicates that MLP SE has a market capitalization of €960m, and total annual CEO compensation was reported as €2.2m for the year to December 2024. We note that's an increase of 13% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €625k.

On comparing similar companies from the German Capital Markets industry with market caps ranging from €349m to €1.4b, we found that the median CEO total compensation was €1.4m. This suggests that Uwe Schroeder-Wildberg is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€625k	€625k	28%
Other	€1.6m	€1.3m	72%
Total Compensation	€2.2m	€1.9m	100%

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. In MLP's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at MLP SE's Growth Numbers

Over the last three years, MLP SE has shrunk its earnings per share by 1.7% per year. In the last year, its revenue is up 9.7%.

Its a bit disappointing to see that the company has failed to grow its EPS. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MLP SE Been A Good Investment?

Boasting a total shareholder return of 67% over three years, MLP SE has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us question whether these strong returns will continue. 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for MLP that investors should think about before committing capital to this stock.

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.