Beiersdorf Aktiengesellschaft's (ETR:BEI) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Beiersdorf to hold its Annual General Meeting on 17th of April
• Total pay for CEO Vincent Warnery includes €1.20m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Beiersdorf's EPS grew by 13% and over the past three years, the total shareholder return was 25%

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Under the guidance of CEO Vincent Warnery, Beiersdorf Aktiengesellschaft (ETR:BEI) has performed reasonably well 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 17th of April. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Beiersdorf

How Does Total Compensation For Vincent Warnery Compare With Other Companies In The Industry?

Our data indicates that Beiersdorf Aktiengesellschaft has a market capitalization of €26b, and total annual CEO compensation was reported as €4.1m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.2m.

On comparing similar companies in the Germany Personal Products industry with market capitalizations above €7.2b, we found that the median total CEO compensation was €4.0m. This suggests that Beiersdorf remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	€1.2m	€1.0m	29%
Other	€2.9m	€3.0m	71%
Total Compensation	€4.1m	€4.0m	100%

Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. Beiersdorf pays a modest slice of remuneration through salary, as compared 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 Beiersdorf Aktiengesellschaft's Growth Numbers

Over the past three years, Beiersdorf Aktiengesellschaft has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 4.3% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Beiersdorf Aktiengesellschaft Been A Good Investment?

Beiersdorf Aktiengesellschaft has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

Whatever your view on compensation, you might want to check if insiders are buying or selling Beiersdorf shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.