Here's Why It's Unlikely That Kuehne + Nagel International AG's (VTX:KNIN) CEO Will See A Pay Rise This Year

Key Insights

• Kuehne + Nagel International's Annual General Meeting to take place on 7th of May
• CEO Stefan Paul's total compensation includes salary of CHF1.20m
• The total compensation is 295% higher than the average for the industry
• Kuehne + Nagel International's three-year loss to shareholders was 22% while its EPS was down 21% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Kuehne + Nagel International. Read for free now.

Kuehne + Nagel International AG (VTX:KNIN) has not performed well recently and CEO Stefan Paul will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 7th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Kuehne + Nagel International

Comparing Kuehne + Nagel International AG's CEO Compensation With The Industry

According to our data, Kuehne + Nagel International AG has a market capitalization of CHF22b, and paid its CEO total annual compensation worth CHF3.8m over the year to December 2024. Notably, that's an increase of 9.8% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF1.2m.

For comparison, other companies in the Switzerland Shipping industry with market capitalizations above CHF6.6b, reported a median total CEO compensation of CHF962k. Accordingly, our analysis reveals that Kuehne + Nagel International AG pays Stefan Paul north of the industry median. What's more, Stefan Paul holds CHF4.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CHF1.2m	CHF1.2m	32%
Other	CHF2.6m	CHF2.3m	68%
Total Compensation	CHF3.8m	CHF3.5m	100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. Kuehne + Nagel International pays a modest slice of remuneration through salary, as compared 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.

A Look at Kuehne + Nagel International AG's Growth Numbers

Kuehne + Nagel International AG has reduced its earnings per share by 21% a year over the last three years. It achieved revenue growth of 13% over the last year.

Overall this is not a very positive result for shareholders. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Kuehne + Nagel International AG Been A Good Investment?

Since shareholders would have lost about 22% over three years, some Kuehne + Nagel International AG investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Kuehne + Nagel International that you should be aware of before investing.

Switching gears from Kuehne + Nagel International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.