This Is Why KWS SAAT SE & Co. KGaA's (ETR:KWS) CEO Can Expect A Bump Up In Their Pay Packet

The decent performance at KWS SAAT SE & Co. KGaA (ETR:KWS) recently will please most shareholders as they go into the AGM coming up on 02 December 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for KWS SAAT SE KGaA

How Does Total Compensation For Hagen Duenbostel Compare With Other Companies In The Industry?

According to our data, KWS SAAT SE & Co. KGaA has a market capitalization of €2.5b, and paid its CEO total annual compensation worth €1.3m over the year to June 2021. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €469k.

In comparison with other companies in the industry with market capitalizations ranging from €1.8b to €5.7b, the reported median CEO total compensation was €2.0m. That is to say, Hagen Duenbostel is paid under the industry median.

Component	2021	2020	Proportion (2021)
Salary	€469k	€469k	35%
Other	€875k	€848k	65%
Total Compensation	€1.3m	€1.3m	100%

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. KWS SAAT SE KGaA sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

KWS SAAT SE & Co. KGaA's Growth

Over the past three years, KWS SAAT SE & Co. KGaA has seen its earnings per share (EPS) grow by 5.1% per year. In the last year, its revenue is up 5.6%.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has KWS SAAT SE & Co. KGaA Been A Good Investment?

We think that the total shareholder return of 35%, over three years, would leave most KWS SAAT SE & Co. KGaA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 KWS SAAT SE KGaA that you should be aware of before investing.

Important note: KWS SAAT SE KGaA 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.

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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