It's Unlikely That LEG Immobilien SE's (ETR:LEG) CEO Will See A Huge Pay Rise This Year

Key Insights

• LEG Immobilien will host its Annual General Meeting on 28th of May
• Total pay for CEO Christian Heinrich Guenter Eugen von Lackum includes €1.05m salary
• The total compensation is 155% higher than the average for the industry
• Over the past three years, LEG Immobilien's EPS fell by 48% and over the past three years, the total loss to shareholders 20%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

In the past three years, the share price of LEG Immobilien SE (ETR:LEG) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 28th of May, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

Check out our latest analysis for LEG Immobilien

Comparing LEG Immobilien SE's CEO Compensation With The Industry

According to our data, LEG Immobilien SE has a market capitalization of €5.5b, and paid its CEO total annual compensation worth €3.0m over the year to December 2024. We note that's an increase of 34% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.0m.

On comparing similar companies from the German Real Estate industry with market caps ranging from €3.5b to €11b, we found that the median CEO total compensation was €1.2m. Hence, we can conclude that Christian Heinrich Guenter Eugen von Lackum is remunerated higher than the industry median.

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. LEG Immobilien 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.

LEG Immobilien SE's Growth

Over the last three years, LEG Immobilien SE has shrunk its earnings per share by 48% per year. Its revenue is up 21% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 LEG Immobilien SE Been A Good Investment?

Given the total shareholder loss of 20% over three years, many shareholders in LEG Immobilien SE are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for LEG Immobilien (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: LEG Immobilien 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.