Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing JOST Werke SE's (ETR:JST) CEO Pay Packet
Key Insights
JOST Werke to hold its Annual General Meeting on 8th of May
Total pay for CEO Joachim Durr includes €724.0k salary
Total compensation is similar to the industry average
Over the past three years, JOST Werke's EPS grew by 39% and over the past three years, the total loss to shareholders 12%
In the past three years, shareholders of JOST Werke SE (ETR:JST) have seen a loss on their investment. 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 JOST Werke
Comparing JOST Werke SE's CEO Compensation With The Industry
At the time of writing, our data shows that JOST Werke SE has a market capitalization of €675m, and reported total annual CEO compensation of €1.8m for the year to December 2023. We note that's an increase of 12% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €724k.
On examining similar-sized companies in the German Machinery industry with market capitalizations between €375m and €1.5b, we discovered that the median CEO total compensation of that group was €1.8m. So it looks like JOST Werke compensates Joachim Durr in line with the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €724k | €724k | 41% |
Other | €1.0m | €849k | 59% |
Total Compensation | €1.8m | €1.6m | 100% |
On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. JOST Werke 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.
JOST Werke SE's Growth
Over the past three years, JOST Werke SE has seen its earnings per share (EPS) grow by 39% per year. In the last year, its revenue is down 1.2%.
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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has JOST Werke SE Been A Good Investment?
Given the total shareholder loss of 12% over three years, many shareholders in JOST Werke SE are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. 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. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for JOST Werke 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.
