It Looks Like Shareholders Would Probably Approve Aurubis AG's (ETR:NDA) CEO Compensation Package

We have been pretty impressed with the performance at Aurubis AG (ETR:NDA) recently and CEO Roland Harings deserves a mention for their role in it. Coming up to the next AGM on 17 February 2022, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Aurubis

Comparing Aurubis AG's CEO Compensation With the industry

According to our data, Aurubis AG has a market capitalization of €4.3b, and paid its CEO total annual compensation worth €2.0m over the year to September 2021. We note that's an increase of 10% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €600k.

In comparison with other companies in the industry with market capitalizations ranging from €3.5b to €10b, the reported median CEO total compensation was €1.7m. This suggests that Aurubis remunerates its CEO largely in line with the industry average.

Component	2021	2020	Proportion (2021)
Salary	€600k	€600k	31%
Other	€1.4m	€1.2m	69%
Total Compensation	€2.0m	€1.8m	100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. It's interesting to note that Aurubis allocates a smaller portion of compensation to salary 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.

Aurubis AG's Growth

Over the past three years, Aurubis AG has seen its earnings per share (EPS) grow by 73% per year. In the last year, its revenue is up 31%.

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 Aurubis AG Been A Good Investment?

Boasting a total shareholder return of 120% over three years, Aurubis AG has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Aurubis that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.