Stock Analysis

Shareholders Will Probably Hold Off On Increasing Hapag-Lloyd Aktiengesellschaft's (ETR:HLAG) CEO Compensation For The Time Being

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Performance at Hapag-Lloyd Aktiengesellschaft (ETR:HLAG) has been reasonably good and CEO Rolf Jansen has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28 May 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Hapag-Lloyd

Comparing Hapag-Lloyd Aktiengesellschaft's CEO Compensation With the industry

At the time of writing, our data shows that Hapag-Lloyd Aktiengesellschaft has a market capitalization of €26b, and reported total annual CEO compensation of US$3.1m for the year to December 2020. We note that's an increase of 23% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$917k.

In comparison with other companies in the industry with market capitalizations over €6.6b , the reported median total CEO compensation was US$1.6m. Hence, we can conclude that Rolf Jansen is remunerated higher than the industry median.

Component20202019Proportion (2020)
Salary US$917k US$842k 30%
Other US$2.2m US$1.7m 70%
Total CompensationUS$3.1m US$2.5m100%

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. It's interesting to note that Hapag-Lloyd allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

XTRA:HLAG CEO Compensation May 21st 2021

Hapag-Lloyd Aktiengesellschaft's Growth

Hapag-Lloyd Aktiengesellschaft has seen its earnings per share (EPS) increase by 237% a year over the past three years. It achieved revenue growth of 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hapag-Lloyd Aktiengesellschaft Been A Good Investment?

Boasting a total shareholder return of 336% over three years, Hapag-Lloyd Aktiengesellschaft has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Hapag-Lloyd (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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