Here's Why Shareholders May Want To Be Cautious With Increasing JOST Werke SE's (ETR:JST) CEO Pay Packet

In This Article:

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.

ceo-compensation
XTRA:JST CEO Compensation May 2nd 2024

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..