It Looks Like HORNBACH Holding AG & Co. KGaA's (ETR:HBH) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• HORNBACH Holding KGaA's Annual General Meeting to take place on 5th of July
• Total pay for CEO Albrecht Hornbach includes €480.0k salary
• The total compensation is similar to the average for the industry
• HORNBACH Holding KGaA's EPS declined by 1.6% over the past three years while total shareholder loss over the past three years was 10%

The results at HORNBACH Holding AG & Co. KGaA (ETR:HBH) have been quite disappointing recently and CEO Albrecht Hornbach bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 5th of July. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for HORNBACH Holding KGaA

How Does Total Compensation For Albrecht Hornbach Compare With Other Companies In The Industry?

Our data indicates that HORNBACH Holding AG & Co. KGaA has a market capitalization of €1.3b, and total annual CEO compensation was reported as €1.5m for the year to February 2024. That's a notable increase of 58% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €480k.

In comparison with other companies in the German Specialty Retail industry with market capitalizations ranging from €934m to €3.0b, the reported median CEO total compensation was €1.5m. So it looks like HORNBACH Holding KGaA compensates Albrecht Hornbach in line with the median for the industry. Furthermore, Albrecht Hornbach directly owns €8.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	€480k	€480k	33%
Other	€976k	€445k	67%
Total Compensation	€1.5m	€925k	100%

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. In HORNBACH Holding KGaA's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

HORNBACH Holding AG & Co. KGaA's Growth

Over the last three years, HORNBACH Holding AG & Co. KGaA has shrunk its earnings per share by 1.6% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Its a bit disappointing to see that the company has failed to grow its EPS. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has HORNBACH Holding AG & Co. KGaA Been A Good Investment?

With a three year total loss of 10% for the shareholders, HORNBACH Holding AG & Co. KGaA would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for HORNBACH Holding KGaA that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

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