We Think Some Shareholders May Hesitate To Increase PVA TePla AG's (ETR:TPE) CEO Compensation

Key Insights

• PVA TePla to hold its Annual General Meeting on 24th of June
• CEO Jalin Ketter's total compensation includes salary of €240.0k
• The total compensation is 174% higher than the average for the industry
• PVA TePla's three-year loss to shareholders was 5.9% while its EPS grew by 29% over the past three years

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In the past three years, the share price of PVA TePla AG (ETR:TPE) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 24th of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for PVA TePla

How Does Total Compensation For Jalin Ketter Compare With Other Companies In The Industry?

Our data indicates that PVA TePla AG has a market capitalization of €392m, and total annual CEO compensation was reported as €485k for the year to December 2024. That's a notable decrease of 29% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €240k.

On examining similar-sized companies in the German Semiconductor industry with market capitalizations between €174m and €697m, we discovered that the median CEO total compensation of that group was €177k. Accordingly, our analysis reveals that PVA TePla AG pays Jalin Ketter north of the industry median.

On an industry level, around 36% of total compensation represents salary and 64% is other remuneration. It's interesting to note that PVA TePla pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

PVA TePla AG's Growth

PVA TePla AG has seen its earnings per share (EPS) increase by 29% a year over the past three years. Revenue was pretty flat on last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 PVA TePla AG Been A Good Investment?

With a three year total loss of 5.9% for the shareholders, PVA TePla AG would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 PVA TePla that investors should think about before committing capital to this stock.

Switching gears from PVA TePla, 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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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.