Shareholders Will Probably Hold Off On Increasing Allianz SE's (ETR:ALV) CEO Compensation For The Time Being

Key Insights

• Allianz will host its Annual General Meeting on 8th of May
• CEO Oliver Bate's total compensation includes salary of €2.01m
• The overall pay is 166% above the industry average
• Allianz's EPS grew by 17% over the past three years while total shareholder return over the past three years was 107%

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Performance at Allianz SE (ETR:ALV) has been reasonably good and CEO Oliver Bate has done a decent job of steering the company in the right direction. 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 8th of May. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Allianz

Comparing Allianz SE's CEO Compensation With The Industry

Our data indicates that Allianz SE has a market capitalization of €140b, and total annual CEO compensation was reported as €10m for the year to December 2024. Notably, that's an increase of 37% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €2.0m.

In comparison with other companies in the Germany Insurance industry with market capitalizations over €7.1b, the reported median total CEO compensation was €3.8m. This suggests that Oliver Bate is paid more than the median for the industry. Furthermore, Oliver Bate directly owns €7.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. Allianz 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.

Allianz SE's Growth

Allianz SE has seen its earnings per share (EPS) increase by 17% a year over the past three years. Its revenue is up 8.0% 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 Allianz SE Been A Good Investment?

Boasting a total shareholder return of 107% over three years, Allianz SE has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Allianz 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.