It's Unlikely That Siemens Healthineers AG's (ETR:SHL) CEO Will See A Huge Pay Rise This Year

CEO Bernd Montag has done a decent job of delivering relatively good performance at Siemens Healthineers AG (ETR:SHL) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15 February 2023. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Siemens Healthineers

How Does Total Compensation For Bernd Montag Compare With Other Companies In The Industry?

At the time of writing, our data shows that Siemens Healthineers AG has a market capitalization of €60b, and reported total annual CEO compensation of €5.7m for the year to September 2022. That's a notable increase of 25% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.4m.

For comparison, other companies in the German Medical Equipment industry with market capitalizations above €7.5b, reported a median total CEO compensation of €3.6m. Hence, we can conclude that Bernd Montag is remunerated higher than the industry median.

Component	2022	2021	Proportion (2022)
Salary	€1.4m	€1.4m	24%
Other	€4.3m	€3.1m	76%
Total Compensation	€5.7m	€4.5m	100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. Siemens Healthineers pays out 24% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Siemens Healthineers AG's Growth

Siemens Healthineers AG has seen its earnings per share (EPS) increase by 5.2% a year over the past three years. Its revenue is up 13% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. 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 Siemens Healthineers AG Been A Good Investment?

Boasting a total shareholder return of 39% over three years, Siemens Healthineers AG has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Siemens Healthineers (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Switching gears from Siemens Healthineers, 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.