Deutsche Konsum REIT-AG's (ETR:DKG) CEO Looks Due For A Compensation Raise

The impressive results at Deutsche Konsum REIT-AG (ETR:DKG) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 11 March 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Deutsche Konsum REIT-AG

How Does Total Compensation For Rolf Elgeti Compare With Other Companies In The Industry?

Our data indicates that Deutsche Konsum REIT-AG has a market capitalization of €548m, and total annual CEO compensation was reported as €71k for the year to September 2020. There was no change in the compensation compared to last year. Notably, the salary of €71k is the entirety of the CEO compensation.

On comparing similar companies from the same industry with market caps ranging from €336m to €1.3b, we found that the median CEO total compensation was €522k. That is to say, Rolf Elgeti is paid under the industry median. Moreover, Rolf Elgeti also holds €4.3m worth of Deutsche Konsum REIT-AG stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	€71k	€71k	100%
Other	-	-	-
Total Compensation	€71k	€71k	100%

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. At the company level, Deutsche Konsum REIT-AG pays Rolf Elgeti solely through a salary, preferring to go down a conventional route. 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.

Deutsche Konsum REIT-AG's Growth

Over the past three years, Deutsche Konsum REIT-AG has seen its funds from operations (FFO) grow by 49% per year. In the last year, its revenue is up 42%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with FFO 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 Deutsche Konsum REIT-AG Been A Good Investment?

Most shareholders would probably be pleased with Deutsche Konsum REIT-AG for providing a total return of 51% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Deutsche Konsum REIT-AG pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Deutsche Konsum REIT-AG (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Deutsche Konsum REIT-AG, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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