We Think The Compensation For Deutsche Post AG's (ETR:DHL) CEO Looks About Right

Key Insights

• Deutsche Post's Annual General Meeting to take place on 3rd of May
• CEO Tobias Meyer's total compensation includes salary of €1.31m
• Total compensation is 41% below industry average
• Over the past three years, Deutsche Post's EPS grew by 9.3% and over the past three years, the total loss to shareholders 12%

Shareholders may be wondering what CEO Tobias Meyer plans to do to improve the less than great performance at Deutsche Post AG (ETR:DHL) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 3rd of May. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Deutsche Post

How Does Total Compensation For Tobias Meyer Compare With Other Companies In The Industry?

At the time of writing, our data shows that Deutsche Post AG has a market capitalization of €44b, and reported total annual CEO compensation of €4.1m for the year to December 2023. Notably, that's an increase of 41% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.3m.

In comparison with other companies in the Germany Logistics industry with market capitalizations over €7.5b, the reported median total CEO compensation was €6.9m. Accordingly, Deutsche Post pays its CEO under the industry median.

Component	2023	2022	Proportion (2023)
Salary	€1.3m	€913k	32%
Other	€2.8m	€2.0m	68%
Total Compensation	€4.1m	€2.9m	100%

On an industry level, roughly 38% of total compensation represents salary and 62% is other remuneration. Deutsche Post sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Deutsche Post AG's Growth

Deutsche Post AG's earnings per share (EPS) grew 9.3% per year over the last three years. In the last year, its revenue is down 13%.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Deutsche Post AG Been A Good Investment?

Since shareholders would have lost about 12% over three years, some Deutsche Post AG investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

It may not be surprising to some that the recent weak performance in the share price may be driven in part by rather flat EPS growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Deutsche Post.

Important note: Deutsche Post is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.