It's Unlikely That Shareholders Will Increase TAG Immobilien AG's (ETR:TEG) Compensation By Much This Year
Key Insights
- TAG Immobilien's Annual General Meeting to take place on 16th of May
- Total pay for CEO Claudia Hoyer includes €480.0k salary
- Total compensation is 51% below industry average
- Over the past three years, TAG Immobilien's EPS fell by 44% and over the past three years, the total loss to shareholders 14%
The underwhelming performance at TAG Immobilien AG (ETR:TEG) recently has probably not pleased shareholders. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 16th of May. From our analysis below, we think CEO compensation looks appropriate for now.
See our latest analysis for TAG Immobilien
Comparing TAG Immobilien AG's CEO Compensation With The Industry
According to our data, TAG Immobilien AG has a market capitalization of €2.6b, and paid its CEO total annual compensation worth €572k over the year to December 2024. That's a notable increase of 19% on last year. Notably, the salary which is €480.0k, represents most of the total compensation being paid.
In comparison with other companies in the German Real Estate industry with market capitalizations ranging from €1.8b to €5.7b, the reported median CEO total compensation was €1.2m. This suggests that Claudia Hoyer is paid below the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €480k | €440k | 84% |
| Other | €92k | €40k | 16% |
| Total Compensation | €572k | €480k | 100% |
On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that TAG Immobilien pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at TAG Immobilien AG's Growth Numbers
Over the last three years, TAG Immobilien AG has shrunk its earnings per share by 44% per year. Its revenue is down 19% over the previous year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has TAG Immobilien AG Been A Good Investment?
Given the total shareholder loss of 14% over three years, many shareholders in TAG Immobilien AG are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business 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 3 warning signs for TAG Immobilien (1 can't be ignored!) that you should be aware of before investing here.
Important note: TAG 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.
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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.