It's Probably Less Likely That KWS SAAT SE & Co. KGaA's (ETR:KWS) CEO Will See A Huge Pay Rise This Year
Key Insights
KWS SAAT SE KGaA will host its Annual General Meeting on 13th of December
Total pay for CEO Felix Büchting includes €421.9k salary
The overall pay is comparable to the industry average
Over the past three years, KWS SAAT SE KGaA's EPS grew by 7.4% and over the past three years, the total loss to shareholders 16%
Shareholders of KWS SAAT SE & Co. KGaA (ETR:KWS) 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. The AGM coming up on the 13th of December could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
View our latest analysis for KWS SAAT SE KGaA
How Does Total Compensation For Felix Büchting Compare With Other Companies In The Industry?
Our data indicates that KWS SAAT SE & Co. KGaA has a market capitalization of €1.7b, and total annual CEO compensation was reported as €1.1m for the year to June 2023. We note that's an increase of 9.8% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €422k.
On comparing similar companies from the Germany Food industry with market caps ranging from €927m to €3.0b, we found that the median CEO total compensation was €1.1m. This suggests that KWS SAAT SE KGaA remunerates its CEO largely in line with the industry average.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €422k | €375k | 38% |
Other | €680k | €629k | 62% |
Total Compensation | €1.1m | €1.0m | 100% |
On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. KWS SAAT SE KGaA pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at KWS SAAT SE & Co. KGaA's Growth Numbers
KWS SAAT SE & Co. KGaA has seen its earnings per share (EPS) increase by 7.4% a year over the past three years. In the last year, its revenue is up 15%.
We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has KWS SAAT SE & Co. KGaA Been A Good Investment?
With a three year total loss of 16% for the shareholders, KWS SAAT SE & Co. KGaA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for KWS SAAT SE KGaA (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.
Important note: KWS SAAT SE KGaA is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
