Shareholders May Be Wary Of Increasing DocCheck AG's (ETR:AJ91) CEO Compensation Package

Key Insights

• DocCheck to hold its Annual General Meeting on 28th of May
• Total pay for CEO Frank Antwerpes includes €190.8k salary
• The overall pay is comparable to the industry average
• DocCheck's EPS declined by 23% over the past three years while total shareholder loss over the past three years was 24%

Our free stock report includes 3 warning signs investors should be aware of before investing in DocCheck. Read for free now.

The results at DocCheck AG (ETR:AJ91) have been quite disappointing recently and CEO Frank Antwerpes bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for DocCheck

Comparing DocCheck AG's CEO Compensation With The Industry

According to our data, DocCheck AG has a market capitalization of €61m, and paid its CEO total annual compensation worth €251k over the year to December 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at €190.8k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Germany Healthcare Services industry with market capitalizations under €177m, the reported median total CEO compensation was €266k. From this we gather that Frank Antwerpes is paid around the median for CEOs in the industry. Moreover, Frank Antwerpes also holds €34m worth of DocCheck stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€191k	€185k	76%
Other	€60k	€60k	24%
Total Compensation	€251k	€245k	100%

On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. DocCheck is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at DocCheck AG's Growth Numbers

DocCheck AG has reduced its earnings per share by 23% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has DocCheck AG Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in DocCheck AG are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in DocCheck we think you should know about.

Switching gears from DocCheck, 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.