We Think Berentzen-Gruppe Aktiengesellschaft's (ETR:BEZ) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Berentzen-Gruppe will host its Annual General Meeting on 17th of May
• Total pay for CEO Oliver Schwegmann includes €400.0k salary
• The total compensation is 102% higher than the average for the industry
• Over the past three years, Berentzen-Gruppe's EPS fell by 11% and over the past three years, the total loss to shareholders 4.0%

Berentzen-Gruppe Aktiengesellschaft (ETR:BEZ) has not performed well recently and CEO Oliver Schwegmann will probably need to up their game. At the upcoming AGM on 17th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Berentzen-Gruppe

Comparing Berentzen-Gruppe Aktiengesellschaft's CEO Compensation With The Industry

According to our data, Berentzen-Gruppe Aktiengesellschaft has a market capitalization of €53m, and paid its CEO total annual compensation worth €629k over the year to December 2023. That's a notable decrease of 13% on last year. We note that the salary portion, which stands at €400.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Germany Beverage industry with market capitalizations under €185m, the reported median total CEO compensation was €311k. This suggests that Oliver Schwegmann is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	€400k	€400k	64%
Other	€229k	€324k	36%
Total Compensation	€629k	€724k	100%

On an industry level, roughly 56% of total compensation represents salary and 44% is other remuneration. According to our research, Berentzen-Gruppe has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Berentzen-Gruppe Aktiengesellschaft's Growth Numbers

Over the last three years, Berentzen-Gruppe Aktiengesellschaft has shrunk its earnings per share by 11% per year. It achieved revenue growth of 6.6% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. 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 Berentzen-Gruppe Aktiengesellschaft Been A Good Investment?

Given the total shareholder loss of 4.0% over three years, many shareholders in Berentzen-Gruppe Aktiengesellschaft are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Berentzen-Gruppe we think you should know about.

Important note: Berentzen-Gruppe is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.