Stock Analysis

Here's Why Hannover Rück SE's (ETR:HNR1) CEO May Deserve A Raise

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Key Insights

  • Hannover Rück will host its Annual General Meeting on 6th of May
  • CEO Jean-Jacques Henchoz's total compensation includes salary of €840.0k
  • The total compensation is 46% less than the average for the industry
  • Hannover Rück's EPS grew by 27% over the past three years while total shareholder return over the past three years was 66%

The solid performance at Hannover Rück SE (ETR:HNR1) has been impressive and shareholders will probably be pleased to know that CEO Jean-Jacques Henchoz has delivered. This would be kept in mind at the upcoming AGM on 6th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Hannover Rück

How Does Total Compensation For Jean-Jacques Henchoz Compare With Other Companies In The Industry?

Our data indicates that Hannover Rück SE has a market capitalization of €28b, and total annual CEO compensation was reported as €2.1m for the year to December 2023. Notably, that's a decrease of 24% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €840k.

In comparison with other companies in the Germany Insurance industry with market capitalizations over €7.5b, the reported median total CEO compensation was €3.9m. That is to say, Jean-Jacques Henchoz is paid under the industry median.

Component20232022Proportion (2023)
Salary €840k €840k 40%
Other €1.3m €1.9m 60%
Total Compensation€2.1m €2.8m100%

Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. There isn't a significant difference between Hannover Rück and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

XTRA:HNR1 CEO Compensation April 30th 2024

Hannover Rück SE's Growth

Over the past three years, Hannover Rück SE has seen its earnings per share (EPS) grow by 27% per year. Its revenue is up 6.5% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hannover Rück SE Been A Good Investment?

Most shareholders would probably be pleased with Hannover Rück SE for providing a total return of 66% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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

Important note: Hannover Rück 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.

Valuation is complex, but we're helping make it simple.

Find out whether Hannover Rück is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.