Key Insights

• Grand City Properties' Annual General Meeting to take place on 26th of June

• CEO Refael Zamir's total compensation includes salary of €711.0k

• Total compensation is similar to the industry average

• Grand City Properties' EPS declined by 89% over the past three years while total shareholder loss over the past three years was 50%

The results at Grand City Properties S.A. (ETR:GYC) have been quite disappointing recently and CEO Refael Zamir bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 26th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Grand City Properties

How Does Total Compensation For Refael Zamir Compare With Other Companies In The Industry?

Our data indicates that Grand City Properties S.A. has a market capitalization of €1.8b, and total annual CEO compensation was reported as €1.6m for the year to December 2023. Notably, that's an increase of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €711k.

On comparing similar companies from the German Real Estate industry with market caps ranging from €931m to €3.0b, we found that the median CEO total compensation was €1.3m. From this we gather that Refael Zamir is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. Grand City Properties sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Grand City Properties S.A.'s Growth Numbers

Over the last three years, Grand City Properties S.A. has shrunk its earnings per share by 89% per year. It achieved revenue growth of 1.3% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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.