It's Probably Less Likely That OVB Holding AG's (ETR:O4B) CEO Will See A Huge Pay Rise This Year

Key Insights

• OVB Holding to hold its Annual General Meeting on 12th of June
• Salary of €671.0k is part of CEO Mario Freis's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, OVB Holding's EPS grew by 8.6% and over the past three years, the total loss to shareholders 15%

As many shareholders of OVB Holding AG (ETR:O4B) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 12th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for OVB Holding

Comparing OVB Holding AG's CEO Compensation With The Industry

Our data indicates that OVB Holding AG has a market capitalization of €284m, and total annual CEO compensation was reported as €973k for the year to December 2023. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is €671.0k, represents most of the total compensation being paid.

In comparison with other companies in the German Capital Markets industry with market capitalizations ranging from €184m to €736m, the reported median CEO total compensation was €900k. From this we gather that Mario Freis is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	€671k	€660k	69%
Other	€302k	€297k	31%
Total Compensation	€973k	€957k	100%

Talking in terms of the industry, salary represented approximately 41% of total compensation out of all the companies we analyzed, while other remuneration made up 59% of the pie. OVB Holding 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.

OVB Holding AG's Growth

OVB Holding AG's earnings per share (EPS) grew 8.6% per year over the last three years. In the last year, its revenue is up 11%.

We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. 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 OVB Holding AG Been A Good Investment?

With a three year total loss of 15% for the shareholders, OVB Holding AG would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 OVB Holding that investors should look into moving forward.

Switching gears from OVB Holding, 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.