Shareholders Will Most Likely Find Beiersdorf Aktiengesellschaft's (ETR:BEI) CEO Compensation Acceptable

Key Insights

• Beiersdorf will host its Annual General Meeting on 18th of April
• CEO Vincent Warnery's total compensation includes salary of €1.00m
• Total compensation is similar to the industry average
• Beiersdorf's total shareholder return over the past three years was 44% while its EPS grew by 9.5% over the past three years

CEO Vincent Warnery has done a decent job of delivering relatively good performance at Beiersdorf Aktiengesellschaft (ETR:BEI) recently. As shareholders go into the upcoming AGM on 18th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Beiersdorf

Comparing Beiersdorf Aktiengesellschaft's CEO Compensation With The Industry

According to our data, Beiersdorf Aktiengesellschaft has a market capitalization of €30b, and paid its CEO total annual compensation worth €4.0m over the year to December 2023. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.0m.

For comparison, other companies in the Germany Personal Products industry with market capitalizations above €7.5b, reported a median total CEO compensation of €5.0m. This suggests that Beiersdorf remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	€1.0m	€1.0m	25%
Other	€3.0m	€3.0m	75%
Total Compensation	€4.0m	€4.0m	100%

Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. In Beiersdorf's case, non-salary compensation represents a greater slice of total remuneration, 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.

Beiersdorf Aktiengesellschaft's Growth

Over the past three years, Beiersdorf Aktiengesellschaft has seen its earnings per share (EPS) grow by 9.5% per year. Its revenue is up 7.4% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. 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 44%, over three years, would leave most Beiersdorf Aktiengesellschaft shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

Shareholders may want to check for free if Beiersdorf insiders are buying or selling shares.

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.