We Take A Look At Why Hapag-Lloyd Aktiengesellschaft's (ETR:HLAG) CEO Has Earned Their Pay Packet

Key Insights

• Hapag-Lloyd to hold its Annual General Meeting on 3rd of May
• CEO Rolf Jansen's total compensation includes salary of €850.0k
• Total compensation is similar to the industry average
• Over the past three years, Hapag-Lloyd's EPS grew by 261% and over the past three years, the total shareholder return was 160%

The performance at Hapag-Lloyd Aktiengesellschaft (ETR:HLAG) has been quite strong recently and CEO Rolf Jansen has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 3rd of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Hapag-Lloyd

Comparing Hapag-Lloyd Aktiengesellschaft's CEO Compensation With The Industry

Our data indicates that Hapag-Lloyd Aktiengesellschaft has a market capitalization of €56b, and total annual CEO compensation was reported as €3.0m for the year to December 2022. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €850k.

On comparing similar companies in the Germany Shipping industry with market capitalizations above €7.3b, we found that the median total CEO compensation was €3.0m. From this we gather that Rolf Jansen is paid around the median for CEOs in the industry.

Component	2022	2021	Proportion (2022)
Salary	€850k	€800k	28%
Other	€2.1m	€2.1m	72%
Total Compensation	€3.0m	€2.9m	100%

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. In Hapag-Lloyd'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.

A Look at Hapag-Lloyd Aktiengesellschaft's Growth Numbers

Over the past three years, Hapag-Lloyd Aktiengesellschaft has seen its earnings per share (EPS) grow by 261% per year. Its revenue is up 55% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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?

Most shareholders would probably be pleased with Hapag-Lloyd Aktiengesellschaft for providing a total return of 160% over three years. 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Hapag-Lloyd we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.