It's Unlikely That The CEO Of Gelsenwasser AG (FRA:WWG) Will See A Huge Pay Rise This Year

Key Insights

• Gelsenwasser will host its Annual General Meeting on 4th of June
• Salary of €453.8k is part of CEO Henning Deters's total remuneration
• The overall pay is comparable to the industry average
• Gelsenwasser's EPS grew by 0.8% over the past three years while total shareholder loss over the past three years was 60%

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Shareholders of Gelsenwasser AG (FRA:WWG) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 4th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Gelsenwasser

Comparing Gelsenwasser AG's CEO Compensation With The Industry

Our data indicates that Gelsenwasser AG has a market capitalization of €1.9b, and total annual CEO compensation was reported as €827k for the year to December 2024. That's a fairly small increase of 7.8% over the previous year. We note that the salary of €453.8k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Germany Integrated Utilities industry with market capitalizations ranging from €886m to €2.8b, the reported median CEO total compensation was €1.2m. From this we gather that Henning Deters is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 29% of total compensation out of all the companies we analyzed, while other remuneration made up 71% of the pie. Gelsenwasser is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Gelsenwasser AG's Growth Numbers

Over the last three years, Gelsenwasser AG has not seen its earnings per share change much, though there is a slight positive movement. It saw its revenue drop 27% over the last year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Gelsenwasser AG Been A Good Investment?

The return of -60% over three years would not have pleased Gelsenwasser AG shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Gelsenwasser that investors should look into moving forward.

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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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.