Shareholders Will Probably Be Cautious Of Increasing Carl Zeiss Meditec AG's (ETR:AFX) CEO Compensation At The Moment

Key Insights

• Carl Zeiss Meditec's Annual General Meeting to take place on 26th of March
• CEO Markus Weber's total compensation includes salary of €435.0k
• The total compensation is 55% less than the average for the industry
• Carl Zeiss Meditec's EPS declined by 11% over the past three years while total shareholder loss over the past three years was 51%

The disappointing performance at Carl Zeiss Meditec AG (ETR:AFX) will make some shareholders rather disheartened. At the upcoming AGM on 26th of March, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for Carl Zeiss Meditec

Comparing Carl Zeiss Meditec AG's CEO Compensation With The Industry

At the time of writing, our data shows that Carl Zeiss Meditec AG has a market capitalization of €6.1b, and reported total annual CEO compensation of €1.1m for the year to September 2024. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €435k.

For comparison, other companies in the German Medical Equipment industry with market capitalizations ranging between €3.7b and €11b had a median total CEO compensation of €2.4m. In other words, Carl Zeiss Meditec pays its CEO lower than the industry median.

On an industry level, roughly 32% of total compensation represents salary and 68% is other remuneration. Carl Zeiss Meditec pays out 41% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Carl Zeiss Meditec AG's Growth

Carl Zeiss Meditec AG has reduced its earnings per share by 11% a year over the last three years. Revenue was pretty flat on last year.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Carl Zeiss Meditec AG Been A Good Investment?

The return of -51% over three years would not have pleased Carl Zeiss Meditec AG shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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've identified 2 warning signs for Carl Zeiss Meditec that investors should be aware of in a dynamic business environment.

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.