AlzChem Group AG's (ETR:ACT) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• AlzChem Group to hold its Annual General Meeting on 11th of May
• Total pay for CEO Andreas Niedermaier includes €315.0k salary
• The total compensation is 81% higher than the average for the industry
• AlzChem Group's EPS grew by 19% over the past three years while total shareholder return over the past three years was 27%

CEO Andreas Niedermaier has done a decent job of delivering relatively good performance at AlzChem Group AG (ETR:ACT) 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 11th of May. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for AlzChem Group

How Does Total Compensation For Andreas Niedermaier Compare With Other Companies In The Industry?

At the time of writing, our data shows that AlzChem Group AG has a market capitalization of €195m, and reported total annual CEO compensation of €818k for the year to December 2022. That's a notable decrease of 8.1% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €315k.

In comparison with other companies in the German Chemicals industry with market capitalizations ranging from €91m to €363m, the reported median CEO total compensation was €453k. Hence, we can conclude that Andreas Niedermaier is remunerated higher than the industry median.

Component	2022	2021	Proportion (2022)
Salary	€315k	€300k	39%
Other	€503k	€590k	61%
Total Compensation	€818k	€890k	100%

Talking in terms of the industry, salary represented approximately 31% of total compensation out of all the companies we analyzed, while other remuneration made up 69% of the pie. According to our research, AlzChem Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

AlzChem Group AG's Growth

Over the past three years, AlzChem Group AG has seen its earnings per share (EPS) grow by 19% per year. It achieved revenue growth of 28% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 AlzChem Group AG Been A Good Investment?

With a total shareholder return of 27% over three years, AlzChem Group AG shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 2 which are concerning) in AlzChem Group we think you should know about.

Switching gears from AlzChem Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.