We Think q.beyond AG's (ETR:QBY) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• q.beyond to hold its Annual General Meeting on 22nd of May
• Total pay for CEO Thies Rixen includes €300.0k salary
• The overall pay is 66% above the industry average
• q.beyond's EPS declined by 0.6% over the past three years while total shareholder loss over the past three years was 25%

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The results at q.beyond AG (ETR:QBY) have been quite disappointing recently and CEO Thies Rixen bears some responsibility for this. At the upcoming AGM on 22nd of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for q.beyond

Comparing q.beyond AG's CEO Compensation With The Industry

At the time of writing, our data shows that q.beyond AG has a market capitalization of €120m, and reported total annual CEO compensation of €433k for the year to December 2024. That's a fairly small increase of 5.1% over the previous year. In particular, the salary of €300.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the German IT industry with market capitalizations below €179m, reported a median total CEO compensation of €261k. Hence, we can conclude that Thies Rixen is remunerated higher than the industry median.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Although there is a difference in how total compensation is set, q.beyond more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

q.beyond AG's Growth

Earnings per share at q.beyond AG are much the same as they were three years ago, albeit slightly lower. It achieved revenue growth of 1.1% over the last year.

A lack of EPS improvement is not good to see. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has q.beyond AG Been A Good Investment?

Given the total shareholder loss of 25% over three years, many shareholders in q.beyond AG are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling q.beyond shares (free trial).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.