We Take A Look At Whether CTS Eventim AG & Co. KGaA's (ETR:EVD) CEO May Be Underpaid

Key Insights

• CTS Eventim KGaA to hold its Annual General Meeting on 21st of May
• Total pay for CEO Klaus-Peter Schulenberg includes €3.50m salary
• Total compensation is 73% below industry average
• Over the past three years, CTS Eventim KGaA's EPS grew by 54% and over the past three years, the total shareholder return was 78%

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Shareholders will be pleased by the impressive results for CTS Eventim AG & Co. KGaA (ETR:EVD) recently and CEO Klaus-Peter Schulenberg has played a key role. At the upcoming AGM on 21st of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for CTS Eventim KGaA

How Does Total Compensation For Klaus-Peter Schulenberg Compare With Other Companies In The Industry?

Our data indicates that CTS Eventim AG & Co. KGaA has a market capitalization of €10b, and total annual CEO compensation was reported as €4.2m for the year to December 2024. That's a notable increase of 11% on last year. Notably, the salary which is €3.50m, represents most of the total compensation being paid.

For comparison, other companies in the German Entertainment industry with market capitalizations above €7.2b, reported a median total CEO compensation of €16m. In other words, CTS Eventim KGaA pays its CEO lower than the industry median. What's more, Klaus-Peter Schulenberg holds €4.0b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	€3.5m	€2.8m	83%
Other	€716k	€1.0m	17%
Total Compensation	€4.2m	€3.8m	100%

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. CTS Eventim KGaA pays out 83% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at CTS Eventim AG & Co. KGaA's Growth Numbers

Over the past three years, CTS Eventim AG & Co. KGaA has seen its earnings per share (EPS) grow by 54% per year. In the last year, its revenue is up 19%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 CTS Eventim AG & Co. KGaA Been A Good Investment?

Boasting a total shareholder return of 78% over three years, CTS Eventim AG & Co. KGaA 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for CTS Eventim KGaA that you should be aware of before investing.

Important note: CTS Eventim KGaA 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.