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Is Bechtle AG's (ETR:BC8) CEO Paid At A Competitive Rate?

The CEO of Bechtle AG (ETR:BC8) is Thomas Olemotz. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Bechtle

How Does Thomas Olemotz's Compensation Compare With Similar Sized Companies?

According to our data, Bechtle AG has a market capitalization of €5.1b, and paid its CEO total annual compensation worth €3.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €1.5m. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €3.3m.

So Thomas Olemotz is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Bechtle has changed from year to year.

XTRA:BC8 CEO Compensation, December 8th 2019
XTRA:BC8 CEO Compensation, December 8th 2019

Is Bechtle AG Growing?

Bechtle AG has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is up 27% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.

Has Bechtle AG Been A Good Investment?

Most shareholders would probably be pleased with Bechtle AG for providing a total return of 169% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Remuneration for Thomas Olemotz is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Bechtle shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.