We Think Shareholders Are Less Likely To Approve A Large Pay Rise For TeamViewer SE's (ETR:TMV) CEO For Now

Key Insights

• TeamViewer's Annual General Meeting to take place on 28th of May
• Salary of €1.04m is part of CEO Oliver Steil's total remuneration
• The total compensation is 437% higher than the average for the industry
• Over the past three years, TeamViewer's EPS grew by 38% and over the past three years, the total loss to shareholders 15%

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Shareholders of TeamViewer SE (ETR:TMV) will have been dismayed by the negative share price return over the last three years. 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 28th of May. They could also influence management through voting on resolutions such as executive remuneration. 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 TeamViewer

Comparing TeamViewer SE's CEO Compensation With The Industry

At the time of writing, our data shows that TeamViewer SE has a market capitalization of €1.7b, and reported total annual CEO compensation of €3.0m for the year to December 2024. Notably, that's an increase of 22% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.0m.

On comparing similar companies from the German Software industry with market caps ranging from €883m to €2.8b, we found that the median CEO total compensation was €562k. This suggests that Oliver Steil is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€1.0m	€923k	34%
Other	€2.0m	€1.6m	66%
Total Compensation	€3.0m	€2.5m	100%

Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. TeamViewer sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

TeamViewer SE's Growth

Over the past three years, TeamViewer SE has seen its earnings per share (EPS) grow by 38% per year. In the last year, its revenue is up 8.1%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has TeamViewer SE Been A Good Investment?

With a three year total loss of 15% for the shareholders, TeamViewer SE would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. 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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for TeamViewer that investors should be aware of in a dynamic business environment.

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.