Yahoo Finance We Take A Look At Why K+S Aktiengesellschaft's (ETR:SDF) CEO Has Earned Their Pay Packet
Key Insights
K+S will host its Annual General Meeting on 14th of May
CEO Burkhard Lohr's total compensation includes salary of €849.0k
The total compensation is similar to the average for the industry
Over the past three years, K+S' EPS grew by 46% and over the past three years, the total shareholder return was 45%
The performance at K+S Aktiengesellschaft (ETR:SDF) has been quite strong recently and CEO Burkhard Lohr has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 14th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
See our latest analysis for K+S
How Does Total Compensation For Burkhard Lohr Compare With Other Companies In The Industry?
Our data indicates that K+S Aktiengesellschaft has a market capitalization of €2.5b, and total annual CEO compensation was reported as €2.4m for the year to December 2023. That's a notable decrease of 27% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €849k.
On comparing similar companies from the German Chemicals industry with market caps ranging from €1.9b to €6.0b, we found that the median CEO total compensation was €2.5m. So it looks like K+S compensates Burkhard Lohr in line with the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €849k | €825k | 35% |
Other | €1.6m | €2.5m | 65% |
Total Compensation | €2.4m | €3.3m | 100% |
Talking in terms of the industry, salary represented approximately 30% of total compensation out of all the companies we analyzed, while other remuneration made up 70% of the pie. According to our research, K+S has allocated a higher percentage of pay to salary in comparison to the wider 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 K+S Aktiengesellschaft's Growth Numbers
Over the past three years, K+S Aktiengesellschaft has seen its earnings per share (EPS) grow by 46% per year. In the last year, its revenue is down 32%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 K+S Aktiengesellschaft Been A Good Investment?
Most shareholders would probably be pleased with K+S Aktiengesellschaft for providing a total return of 45% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for K+S (1 is a bit unpleasant!) that you should be aware of before investing here.
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.
