Talanx AG's (ETR:TLX) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Talanx to hold its Annual General Meeting on 7th of May
• Salary of €1.02m is part of CEO Torsten Leue's total remuneration
• The overall pay is comparable to the industry average
• Talanx's total shareholder return over the past three years was 128% while its EPS grew by 34% over the past three years

We have been pretty impressed with the performance at Talanx AG (ETR:TLX) recently and CEO Torsten Leue deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 7th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Talanx

Comparing Talanx AG's CEO Compensation With The Industry

Our data indicates that Talanx AG has a market capitalization of €18b, and total annual CEO compensation was reported as €3.5m for the year to December 2023. Notably, that's an increase of 12% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.0m.

For comparison, other companies in the Germany Insurance industry with market capitalizations above €7.5b, reported a median total CEO compensation of €3.9m. From this we gather that Torsten Leue is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	€1.0m	€1.0m	29%
Other	€2.5m	€2.2m	71%
Total Compensation	€3.5m	€3.2m	100%

On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. In Talanx's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Talanx AG's Growth Numbers

Talanx AG has seen its earnings per share (EPS) increase by 34% a year over the past three years. In the last year, its revenue is up 13%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Talanx AG Been A Good Investment?

We think that the total shareholder return of 128%, over three years, would leave most Talanx AG shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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

Important note: Talanx 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. 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.