Shareholders Will Probably Hold Off On Increasing Medios AG's (ETR:ILM1) CEO Compensation For The Time Being

Key Insights

• Medios' Annual General Meeting to take place on 27th of May
• Salary of €366.0k is part of CEO Matthias Gaertner's total remuneration
• The total compensation is 45% higher than the average for the industry
• Medios' three-year loss to shareholders was 52% while its EPS grew by 9.1% over the past three years

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In the past three years, the share price of Medios AG (ETR:ILM1) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 27th of May. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Medios

Comparing Medios AG's CEO Compensation With The Industry

Our data indicates that Medios AG has a market capitalization of €310m, and total annual CEO compensation was reported as €647k for the year to December 2024. That's a notable increase of 26% on last year. Notably, the salary which is €366.0k, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the German Healthcare industry with market capitalizations ranging from €177m to €709m, the reported median CEO total compensation was €446k. Hence, we can conclude that Matthias Gaertner is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	€366k	€342k	57%
Other	€281k	€172k	43%
Total Compensation	€647k	€514k	100%

Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. Although there is a difference in how total compensation is set, Medios more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Medios AG's Growth Numbers

Over the past three years, Medios AG has seen its earnings per share (EPS) grow by 9.1% per year. It achieved revenue growth of 5.7% over the last year.

We'd prefer higher 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Medios AG Been A Good Investment?

The return of -52% over three years would not have pleased Medios AG shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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

Important note: Medios 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.