Aurubis AG's (ETR:NDA) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Aurubis' Annual General Meeting to take place on 15th of February
• Salary of €650.0k is part of CEO Roland Harings's total remuneration
• The overall pay is comparable to the industry average
• Aurubis' three-year loss to shareholders was 0.2% while its EPS was down 27% over the past three years

Aurubis AG (ETR:NDA) has not performed well recently and CEO Roland Harings will probably need to up their game. At the upcoming AGM on 15th of February, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Aurubis

How Does Total Compensation For Roland Harings Compare With Other Companies In The Industry?

At the time of writing, our data shows that Aurubis AG has a market capitalization of €2.8b, and reported total annual CEO compensation of €1.1m for the year to September 2023. That's a notable decrease of 49% on last year. In particular, the salary of €650.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Germany Metals and Mining industry with market capitalizations ranging from €1.9b to €5.9b, the reported median CEO total compensation was €932k. From this we gather that Roland Harings is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	€650k	€650k	59%
Other	€453k	€1.5m	41%
Total Compensation	€1.1m	€2.1m	100%

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. Although there is a difference in how total compensation is set, Aurubis more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Aurubis AG's Growth Numbers

Over the last three years, Aurubis AG has shrunk its earnings per share by 27% per year. It saw its revenue drop 7.3% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Aurubis AG Been A Good Investment?

Given the total shareholder loss of 0.2% over three years, many shareholders in Aurubis AG are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Aurubis that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.