Yahoo Finance Shareholders Will Probably Hold Off On Increasing DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen's (ETR:DAM) CEO Compensation For The Time Being
Key Insights
DATA MODUL Produktion und Vertrieb von elektronischen Systemen to hold its Annual General Meeting on 8th of May
Total pay for CEO Florian Pesahl includes €250.0k salary
Total compensation is 105% above industry average
Over the past three years, DATA MODUL Produktion und Vertrieb von elektronischen Systemen's EPS grew by 24% and over the past three years, the total loss to shareholders 26%
In the past three years, the share price of DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 8th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
See our latest analysis for DATA MODUL Produktion und Vertrieb von elektronischen Systemen
Comparing DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen's CEO Compensation With The Industry
Our data indicates that DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen has a market capitalization of €123m, and total annual CEO compensation was reported as €664k for the year to December 2023. Notably, that's a decrease of 16% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €250k.
On comparing similar-sized companies in the German Electronic industry with market capitalizations below €187m, we found that the median total CEO compensation was €323k. This suggests that Florian Pesahl is paid more than the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €250k | €230k | 38% |
Other | €414k | €558k | 62% |
Total Compensation | €664k | €788k | 100% |
On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. It's interesting to note that DATA MODUL Produktion und Vertrieb von elektronischen Systemen allocates a smaller portion of compensation to salary 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.
DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen's Growth
Over the past three years, DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen has seen its earnings per share (EPS) grow by 24% per year. It achieved revenue growth of 2.6% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen Been A Good Investment?
Since shareholders would have lost about 26% over three years, some DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for DATA MODUL Produktion und Vertrieb von elektronischen Systemen that investors should be aware of in a dynamic business environment.
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.
