Shareholders May Not Be So Generous With Fraport AG's (ETR:FRA) CEO Compensation And Here's Why

Key Insights

• Fraport's Annual General Meeting to take place on 27th of May
• Salary of €715.0k is part of CEO Stefan Schulte's total remuneration
• Total compensation is 800% above industry average
• Over the past three years, Fraport's EPS grew by 119% and over the past three years, the total shareholder return was 21%

We've discovered 1 warning sign about Fraport. View them for free.

Performance at Fraport AG (ETR:FRA) has been reasonably good and CEO Stefan Schulte has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 27th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Fraport

How Does Total Compensation For Stefan Schulte Compare With Other Companies In The Industry?

According to our data, Fraport AG has a market capitalization of €5.5b, and paid its CEO total annual compensation worth €2.4m over the year to December 2024. Notably, that's an increase of 43% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at €715k.

In comparison with other companies in the Germany Infrastructure industry with market capitalizations ranging from €3.5b to €11b, the reported median CEO total compensation was €263k. This suggests that Stefan Schulte is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€715k	€715k	30%
Other	€1.7m	€943k	70%
Total Compensation	€2.4m	€1.7m	100%

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Fraport pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Fraport AG's Growth Numbers

Fraport AG's earnings per share (EPS) grew 119% per year over the last three years. It achieved revenue growth of 7.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Fraport AG Been A Good Investment?

Fraport AG has served shareholders reasonably well, with a total return of 21% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Fraport that investors should think about before committing capital to this stock.

Important note: Fraport is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.