We Think Shareholders May Want To Consider A Review Of Basler Aktiengesellschaft's (ETR:BSL) CEO Compensation Package

Key Insights

• Basler will host its Annual General Meeting on 23rd of May
• CEO Dietmar Ley's total compensation includes salary of €321.0k
• Total compensation is similar to the industry average
• Over the past three years, Basler's EPS fell by 92% and over the past three years, the total loss to shareholders 74%

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Shareholders will probably not be too impressed with the underwhelming results at Basler Aktiengesellschaft (ETR:BSL) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of May. 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.

See our latest analysis for Basler

Comparing Basler Aktiengesellschaft's CEO Compensation With The Industry

Our data indicates that Basler Aktiengesellschaft has a market capitalization of €278m, and total annual CEO compensation was reported as €478k for the year to December 2024. Notably, that's an increase of 22% over the year before. In particular, the salary of €321.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the German Electronic industry with market caps ranging from €179m to €718m, we found that the median CEO total compensation was €555k. This suggests that Basler remunerates its CEO largely in line with the industry average. What's more, Dietmar Ley holds €11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Basler is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Basler Aktiengesellschaft's Growth

Over the last three years, Basler Aktiengesellschaft has shrunk its earnings per share by 92% per year. Its revenue is up 4.9% over the last year.

The decline in EPS is a bit concerning. 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. 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 Basler Aktiengesellschaft Been A Good Investment?

Few Basler Aktiengesellschaft shareholders would feel satisfied with the return of -74% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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

Switching gears from Basler, 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.