We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München's (ETR:MUV2) CEO For Now

CEO Joachim Wenning has done a decent job of delivering relatively good performance at Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (ETR:MUV2) 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 28 April 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Münchener Rückversicherungs-Gesellschaft in München

Comparing Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München's CEO Compensation With the industry

At the time of writing, our data shows that Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München has a market capitalization of €36b, and reported total annual CEO compensation of €5.9m for the year to December 2020. That's a modest increase of 4.4% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €2.3m.

On comparing similar companies in the industry with market capitalizations above €6.6b, we found that the median total CEO compensation was €2.7m. This suggests that Joachim Wenning is paid more than the median for the industry. What's more, Joachim Wenning holds €4.1m worth of shares in the company in their own name.

On an industry level, roughly 41% of total compensation represents salary and 59% is other remuneration. Our data reveals that Münchener Rückversicherungs-Gesellschaft in München allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München's Growth Numbers

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München's earnings per share (EPS) grew 52% per year over the last three years. Its revenue is up 2.5% 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 Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München Been A Good Investment?

Most shareholders would probably be pleased with Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München for providing a total return of 48% over three years. 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...

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. 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.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Münchener Rückversicherungs-Gesellschaft in München that investors should be aware of in a dynamic business environment.

Important note: Münchener Rückversicherungs-Gesellschaft in München 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. 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.
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