We Think YOC AG's (ETR:YOC) CEO Compensation Looks Fair

Key Insights

• YOC to hold its Annual General Meeting on 2nd of July
• CEO Dirk-Hilmar Kraus' total compensation includes salary of €249.0k
• Total compensation is similar to the industry average
• YOC's EPS grew by 54% over the past three years while total shareholder return over the past three years was 120%

The performance at YOC AG (ETR:YOC) has been quite strong recently and CEO Dirk-Hilmar Kraus has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 2nd of July. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for YOC

How Does Total Compensation For Dirk-Hilmar Kraus Compare With Other Companies In The Industry?

Our data indicates that YOC AG has a market capitalization of €72m, and total annual CEO compensation was reported as €249k for the year to December 2023. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €249k.

In comparison with other companies in the Germany Interactive Media and Services industry with market capitalizations under €187m, the reported median total CEO compensation was €286k. So it looks like YOC compensates Dirk-Hilmar Kraus in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	€249k	€243k	100%
Other	-	-	-
Total Compensation	€249k	€243k	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. Speaking on a company level, YOC prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at YOC AG's Growth Numbers

YOC AG has seen its earnings per share (EPS) increase by 54% a year over the past three years. Its revenue is up 35% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has YOC AG Been A Good Investment?

Most shareholders would probably be pleased with YOC AG for providing a total return of 120% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

YOC pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for YOC (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com