Shareholders May Find It Hard To Justify A Pay Rise For YOC AG's (ETR:YOC) CEO This Year

Key Insights

• YOC will host its Annual General Meeting on 16th of July
• Salary of €285.0k is part of CEO Dirk-Hilmar Kraus's total remuneration
• Total compensation is similar to the industry average
• YOC's EPS grew by 13% over the past three years while total shareholder return over the past three years was 1.6%

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Performance at YOC AG (ETR:YOC) has been reasonably good and CEO Dirk-Hilmar Kraus has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of July. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for YOC

Comparing YOC AG's CEO Compensation With The Industry

According to our data, YOC AG has a market capitalization of €56m, and paid its CEO total annual compensation worth €285k over the year to December 2024. Notably, that's an increase of 14% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth €285k.

For comparison, other companies in the Germany Interactive Media and Services industry with market capitalizations below €171m, reported a median total CEO compensation of €286k. This suggests that YOC remunerates its CEO largely in line with the industry average.

Talking in terms of the industry, salary represented approximately 57% of total compensation out of all the companies we analyzed, while other remuneration made up 43% of the pie. Speaking on a company level, YOC prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at YOC AG's Growth Numbers

Over the past three years, YOC AG has seen its earnings per share (EPS) grow by 13% per year. In the last year, its revenue is up 8.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 YOC AG Been A Good Investment?

YOC AG has not done too badly by shareholders, with a total return of 1.6%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

YOC rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for YOC (1 is potentially serious!) that you should be aware of before investing here.

Important note: YOC 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.