Should Shareholders Reconsider Hamburger Hafen und Logistik Aktiengesellschaft's (ETR:HHFA) CEO Compensation Package?

Key Insights

• Hamburger Hafen und Logistik to hold its Annual General Meeting on 13th of June
• Total pay for CEO Angela Titzrath includes €495.0k salary
• The total compensation is 701% higher than the average for the industry
• Hamburger Hafen und Logistik's three-year loss to shareholders was 10% while its EPS was down 34% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Hamburger Hafen und Logistik Aktiengesellschaft (ETR:HHFA) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 13th of June. 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.

View our latest analysis for Hamburger Hafen und Logistik

Comparing Hamburger Hafen und Logistik Aktiengesellschaft's CEO Compensation With The Industry

Our data indicates that Hamburger Hafen und Logistik Aktiengesellschaft has a market capitalization of €1.3b, and total annual CEO compensation was reported as €992k for the year to December 2023. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at €495k.

In comparison with other companies in the Germany Infrastructure industry with market capitalizations ranging from €918m to €2.9b, the reported median CEO total compensation was €124k. Accordingly, our analysis reveals that Hamburger Hafen und Logistik Aktiengesellschaft pays Angela Titzrath north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	€495k	€495k	50%
Other	€497k	€505k	50%
Total Compensation	€992k	€1.0m	100%

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. Hamburger Hafen und Logistik pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Hamburger Hafen und Logistik Aktiengesellschaft's Growth Numbers

Over the last three years, Hamburger Hafen und Logistik Aktiengesellschaft has shrunk its earnings per share by 34% per year. In the last year, its revenue is down 6.2%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Hamburger Hafen und Logistik Aktiengesellschaft Been A Good Investment?

With a three year total loss of 10% for the shareholders, Hamburger Hafen und Logistik Aktiengesellschaft would certainly have some dissatisfied shareholders. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Hamburger Hafen und Logistik (1 can't be ignored!) that you should be aware of before investing here.

Switching gears from Hamburger Hafen und Logistik, 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.