We Discuss Why Fresenius Medical Care AG's (ETR:FME) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

Key Insights

• Fresenius Medical Care's Annual General Meeting to take place on 22nd of May
• Total pay for CEO Helen Giza includes €1.66m salary
• The total compensation is 53% less than the average for the industry
• Over the past three years, Fresenius Medical Care's EPS fell by 11% and over the past three years, the total loss to shareholders 3.8%

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The disappointing performance at Fresenius Medical Care AG (ETR:FME) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 22nd of May. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for Fresenius Medical Care

How Does Total Compensation For Helen Giza Compare With Other Companies In The Industry?

Our data indicates that Fresenius Medical Care AG has a market capitalization of €15b, and total annual CEO compensation was reported as €4.6m for the year to December 2024. We note that's a decrease of 18% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.7m.

On comparing similar companies in the German Healthcare industry with market capitalizations above €7.2b, we found that the median total CEO compensation was €9.8m. Accordingly, Fresenius Medical Care pays its CEO under the industry median. What's more, Helen Giza holds €1.2m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	€1.7m	€1.7m	36%
Other	€2.9m	€3.9m	64%
Total Compensation	€4.6m	€5.5m	100%

On an industry level, roughly 56% of total compensation represents salary and 44% is other remuneration. Fresenius Medical Care pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Fresenius Medical Care AG's Growth

Fresenius Medical Care AG has reduced its earnings per share by 11% a year over the last three years. In the last year, its revenue changed by just 0.1%.

Overall this is not a very positive result for shareholders. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Fresenius Medical Care AG Been A Good Investment?

Since shareholders would have lost about 3.8% over three years, some Fresenius Medical Care AG investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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, the board will get the chance to explain the steps it plans to take to improve business performance.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fresenius Medical Care.

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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.