Increases to DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen's (ETR:DAM) CEO Compensation Might Cool off for now

Key Insights

• DATA MODUL Produktion und Vertrieb von elektronischen Systemen's Annual General Meeting to take place on 8th of May
• Salary of €250.0k is part of CEO Florian Pesahl's total remuneration
• Total compensation is 105% above industry average
• Over the past three years, DATA MODUL Produktion und Vertrieb von elektronischen Systemen's EPS grew by 24% and over the past three years, the total loss to shareholders 26%

Shareholders of DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) 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. The AGM coming up on the 8th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for DATA MODUL Produktion und Vertrieb von elektronischen Systemen

Comparing DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen's CEO Compensation With The Industry

Our data indicates that DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen has a market capitalization of €123m, and total annual CEO compensation was reported as €664k for the year to December 2023. That's a notable decrease of 16% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €250k.

For comparison, other companies in the German Electronic industry with market capitalizations below €187m, reported a median total CEO compensation of €323k. This suggests that Florian Pesahl is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	€250k	€230k	38%
Other	€414k	€558k	62%
Total Compensation	€664k	€788k	100%

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. In DATA MODUL Produktion und Vertrieb von elektronischen Systemen's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen's Growth

DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen has seen its earnings per share (EPS) increase by 24% a year over the past three years. Its revenue is up 2.6% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen Been A Good Investment?

Given the total shareholder loss of 26% over three years, many shareholders in DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen are probably rather dissatisfied, to say the least. 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. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for DATA MODUL Produktion und Vertrieb von elektronischen Systemen that investors should think about before committing capital to this stock.

Switching gears from DATA MODUL Produktion und Vertrieb von elektronischen Systemen, 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.