We think SFC Energy AG's (ETR:F3C) CEO May Struggle To See Much Of A Pay Rise This Year

Key Insights

• SFC Energy to hold its Annual General Meeting on 22nd of May
• CEO Peter Podesser's total compensation includes salary of €444.0k
• The total compensation is similar to the average for the industry
• SFC Energy's EPS grew by 94% over the past three years while total shareholder return over the past three years was 1.5%

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Performance at SFC Energy AG (ETR:F3C) has been reasonably good and CEO Peter Podesser has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22nd of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for SFC Energy

How Does Total Compensation For Peter Podesser Compare With Other Companies In The Industry?

At the time of writing, our data shows that SFC Energy AG has a market capitalization of €431m, and reported total annual CEO compensation of €725k for the year to December 2024. We note that's an increase of 14% above last year. In particular, the salary of €444.0k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the German Electrical industry with market capitalizations between €179m and €715m, we discovered that the median CEO total compensation of that group was €1.0m. From this we gather that Peter Podesser is paid around the median for CEOs in the industry. Moreover, Peter Podesser also holds €3.8m worth of SFC Energy stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€444k	€370k	61%
Other	€281k	€263k	39%
Total Compensation	€725k	€633k	100%

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. SFC Energy is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at SFC Energy AG's Growth Numbers

Over the past three years, SFC Energy AG has seen its earnings per share (EPS) grow by 94% per year. It achieved revenue growth of 23% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has SFC Energy AG Been A Good Investment?

With a total shareholder return of 1.5% over three years, SFC Energy AG has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for SFC Energy that investors should look into moving forward.

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.