We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Siemens Healthineers AG's (ETR:SHL) CEO For Now

Under the guidance of CEO Bernd Montag, Siemens Healthineers AG (ETR:SHL) has performed reasonably well recently. As shareholders go into the upcoming AGM on 15 February 2022, 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.

Check out 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 €63b, and reported total annual CEO compensation of €4.5m for the year to September 2021. Notably, that's an increase of 25% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.4m.

In comparison with other companies in the industry with market capitalizations over €7.0b , the reported median total CEO compensation was €2.9m. Hence, we can conclude that Bernd Montag is remunerated higher than the industry median.

Component	2021	2020	Proportion (2021)
Salary	€1.4m	€1.1m	31%
Other	€3.1m	€2.6m	69%
Total Compensation	€4.5m	€3.6m	100%

Talking in terms of the industry, salary represented approximately 38% of total compensation out of all the companies we analyzed, while other remuneration made up 62% of the pie. It's interesting to note that Siemens Healthineers allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Siemens Healthineers AG's Growth Numbers

Siemens Healthineers AG has seen its earnings per share (EPS) increase by 6.6% a year over the past three years. Its revenue is up 30% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Siemens Healthineers AG Been A Good Investment?

Most shareholders would probably be pleased with Siemens Healthineers AG for providing a total return of 68% over three years. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Siemens Healthineers you should be aware of, and 1 of them makes us a bit uncomfortable.

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.