Shareholders Will Probably Not Have Any Issues With Scout24 SE's (ETR:G24) CEO Compensation

Key Insights

• Scout24 to hold its Annual General Meeting on 5th of June
• Salary of €1.02m is part of CEO Tobi Hartmann's total remuneration
• The total compensation is similar to the average for the industry
• Scout24's EPS grew by 35% over the past three years while total shareholder return over the past three years was 12%

CEO Tobi Hartmann has done a decent job of delivering relatively good performance at Scout24 SE (ETR:G24) 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 5th of June. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Scout24

Comparing Scout24 SE's CEO Compensation With The Industry

At the time of writing, our data shows that Scout24 SE has a market capitalization of €5.1b, and reported total annual CEO compensation of €3.7m for the year to December 2023. We note that's a decrease of 26% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.0m.

In comparison with other companies in the Germany Interactive Media and Services industry with market capitalizations ranging from €3.7b to €11b, the reported median CEO total compensation was €3.3m. From this we gather that Tobi Hartmann is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	€1.0m	€1.0m	28%
Other	€2.6m	€3.9m	72%
Total Compensation	€3.7m	€4.9m	100%

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. Scout24 pays a modest slice of remuneration through salary, as compared 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.

Scout24 SE's Growth

Over the past three years, Scout24 SE has seen its earnings per share (EPS) grow by 35% per year. Its revenue is up 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Scout24 SE Been A Good Investment?

Scout24 SE has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Scout24 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.