Shareholders Will Probably Hold Off On Increasing MLP SE's (ETR:MLP) CEO Compensation For The Time Being

Key Insights

• MLP will host its Annual General Meeting on 27th of June
• CEO Uwe Schroeder-Wildberg's total compensation includes salary of €625.0k
• The total compensation is 34% higher than the average for the industry
• MLP's total shareholder return over the past three years was 1.6% while its EPS grew by 1.5% over the past three years

CEO Uwe Schroeder-Wildberg has done a decent job of delivering relatively good performance at MLP SE (ETR:MLP) recently. 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 27th of June. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for MLP

Comparing MLP SE's CEO Compensation With The Industry

According to our data, MLP SE has a market capitalization of €696m, and paid its CEO total annual compensation worth €1.9m over the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €625k.

On examining similar-sized companies in the German Capital Markets industry with market capitalizations between €374m and €1.5b, we discovered that the median CEO total compensation of that group was €1.5m. Hence, we can conclude that Uwe Schroeder-Wildberg is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	€625k	€550k	32%
Other	€1.3m	€1.5m	68%
Total Compensation	€1.9m	€2.0m	100%

On an industry level, roughly 41% of total compensation represents salary and 59% is other remuneration. In MLP'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.

MLP SE's Growth

MLP SE's earnings per share (EPS) grew 1.5% per year over the last three years. In the last year, its revenue is up 5.9%.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. 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?

MLP SE has generated a total shareholder return of 1.6% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

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 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.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.

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