It's Unlikely That The CEO Of Nagarro SE (ETR:NA9) Will See A Huge Pay Rise This Year

Key Insights

• Nagarro to hold its Annual General Meeting on 30th of June
• CEO Manas Human's total compensation includes salary of €420.0k
• Total compensation is similar to the industry average
• Nagarro's EPS grew by 4.9% over the past three years while total shareholder loss over the past three years was 50%

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Shareholders of Nagarro SE (ETR:NA9) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30th of June. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Nagarro

Comparing Nagarro SE's CEO Compensation With The Industry

At the time of writing, our data shows that Nagarro SE has a market capitalization of €717m, and reported total annual CEO compensation of €482k for the year to December 2024. That's a notable increase of 46% on last year. Notably, the salary which is €420.0k, represents most of the total compensation being paid.

In comparison with other companies in the German IT industry with market capitalizations ranging from €346m to €1.4b, the reported median CEO total compensation was €480k. This suggests that Nagarro remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Nagarro is paying a higher share of its remuneration through a salary in comparison to the overall 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 Nagarro SE's Growth Numbers

Over the past three years, Nagarro SE has seen its earnings per share (EPS) grow by 4.9% per year. In the last year, its revenue is up 6.5%.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Nagarro SE Been A Good Investment?

With a total shareholder return of -50% over three years, Nagarro SE shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. 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. We did our research and spotted 1 warning sign for Nagarro that investors should look into moving forward.

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.