Shareholders Will Probably Hold Off On Increasing DIC Asset AG's (ETR:DIC) CEO Compensation For The Time Being

Performance at DIC Asset AG (ETR:DIC) has been reasonably good and CEO Sonja Warntges has done a decent job of steering the company in the right direction. 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 24 March 2022. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for DIC Asset

How Does Total Compensation For Sonja Warntges Compare With Other Companies In The Industry?

At the time of writing, our data shows that DIC Asset AG has a market capitalization of €1.3b, and reported total annual CEO compensation of €2.0m for the year to December 2021. That's a notable increase of 41% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €900k.

On comparing similar companies from the same industry with market caps ranging from €900m to €2.9b, we found that the median CEO total compensation was €983k. Hence, we can conclude that Sonja Warntges is remunerated higher than the industry median.

Component	2021	2020	Proportion (2021)
Salary	€900k	€868k	45%
Other	€1.1m	€546k	55%
Total Compensation	€2.0m	€1.4m	100%

On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. DIC Asset is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at DIC Asset AG's Growth Numbers

DIC Asset AG's earnings per share (EPS) grew 1.2% per year over the last three years. In the last year, its revenue is up 12%.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 DIC Asset AG Been A Good Investment?

Boasting a total shareholder return of 68% over three years, DIC Asset AG has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for DIC Asset you should be aware of, and 2 of them are concerning.

Important note: DIC Asset 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.