Increases to CEO Compensation Might Be Put On Hold For Now at Beiersdorf Aktiengesellschaft (ETR:BEI)

Key Insights

• Beiersdorf to hold its Annual General Meeting on 13th of April
• Salary of €1.00m is part of CEO Vincent Warnery's total remuneration
• Total compensation is 36% above industry average
• Over the past three years, Beiersdorf's EPS grew by 1.7% and over the past three years, the total shareholder return was 40%

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 13th of April. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Beiersdorf

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

At the time of writing, our data shows that Beiersdorf Aktiengesellschaft has a market capitalization of €28b, and reported total annual CEO compensation of €4.0m for the year to December 2022. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.0m.

In comparison with other companies in the Germany Personal Products industry with market capitalizations over €7.3b, the reported median total CEO compensation was €2.9m. Hence, we can conclude that Vincent Warnery is remunerated higher than the industry median.

Component	2022	2021	Proportion (2022)
Salary	€1.0m	€841k	25%
Other	€3.0m	€3.1m	75%
Total Compensation	€4.0m	€4.0m	100%

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Beiersdorf sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Beiersdorf Aktiengesellschaft's Growth

Beiersdorf Aktiengesellschaft's earnings per share (EPS) grew 1.7% per year over the last three years. In the last year, its revenue is up 15%.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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?

We think that the total shareholder return of 40%, over three years, would leave most Beiersdorf Aktiengesellschaft shareholders smiling. 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.

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. 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.

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

Important note: Beiersdorf 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.