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

Key Insights

• Siemens Healthineers' Annual General Meeting to take place on 18th of February
• Salary of €1.41m is part of CEO Bernd Montag's total remuneration
• The overall pay is 35% above the industry average
• Siemens Healthineers' total shareholder return over the past three years was 9.0% while its EPS grew by 3.9% over the past three years

CEO Bernd Montag has done a decent job of delivering relatively good performance at Siemens Healthineers AG (ETR:SHL) recently. As shareholders go into the upcoming AGM on 18th of February, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Siemens Healthineers

Comparing Siemens Healthineers AG's CEO Compensation With The Industry

At the time of writing, our data shows that Siemens Healthineers AG has a market capitalization of €65b, and reported total annual CEO compensation of €6.1m for the year to September 2024. That's a modest increase of 7.3% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.4m.

In comparison with other companies in the German Medical Equipment industry with market capitalizations over €7.7b, the reported median total CEO compensation was €4.5m. Hence, we can conclude that Bernd Montag is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	€1.4m	€1.4m	23%
Other	€4.7m	€4.3m	77%
Total Compensation	€6.1m	€5.7m	100%

On an industry level, roughly 32% of total compensation represents salary and 68% is other remuneration. It's interesting to note that Siemens Healthineers allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Siemens Healthineers AG's Growth Numbers

Siemens Healthineers AG's earnings per share (EPS) grew 3.9% per year over the last three years. It achieved revenue growth of 4.1% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see 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 Siemens Healthineers AG Been A Good Investment?

Siemens Healthineers AG has not done too badly by shareholders, with a total return of 9.0%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Siemens Healthineers that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.