Increases to CEO Compensation Might Be Put On Hold For Now at Allianz SE (ETR:ALV)

Key Insights

• Allianz to hold its Annual General Meeting on 8th of May
• CEO Oliver Bate's total compensation includes salary of €2.01m
• The overall pay is 86% above the industry average
• Allianz's EPS grew by 9.4% over the past three years while total shareholder return over the past three years was 40%

Under the guidance of CEO Oliver Bate, Allianz SE (ETR:ALV) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 8th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Allianz

How Does Total Compensation For Oliver Bate Compare With Other Companies In The Industry?

At the time of writing, our data shows that Allianz SE has a market capitalization of €104b, and reported total annual CEO compensation of €7.5m for the year to December 2023. That's a notable increase of 10% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €2.0m.

For comparison, other companies in the Germany Insurance industry with market capitalizations above €7.5b, reported a median total CEO compensation of €4.0m. Hence, we can conclude that Oliver Bate is remunerated higher than the industry median. Moreover, Oliver Bate also holds €5.4m worth of Allianz stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€2.0m	€1.9m	27%
Other	€5.5m	€4.9m	73%
Total Compensation	€7.5m	€6.8m	100%

Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. In Allianz's case, non-salary compensation represents a greater slice of total remuneration, 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.

Allianz SE's Growth

Allianz SE's earnings per share (EPS) grew 9.4% per year over the last three years. In the last year, its revenue is up 3.0%.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 Allianz SE Been A Good Investment?

We think that the total shareholder return of 40%, over three years, would leave most Allianz SE shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Allianz.

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.