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Does Bilfinger SE's (ETR:GBF) CEO Pay Compare Well With Peers?

The CEO of Bilfinger SE (ETR:GBF) is Tom Blades. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Bilfinger

How Does Tom Blades's Compensation Compare With Similar Sized Companies?

According to our data, Bilfinger SE has a market capitalization of €1.1b, and pays its CEO total annual compensation worth €4.1m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €1.2m. We looked at a group of companies with market capitalizations from €361m to €1.4b, and the median CEO total compensation was €1.1m.

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Thus we can conclude that Tom Blades receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bilfinger SE. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

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

XTRA:GBF CEO Compensation, September 16th 2019
XTRA:GBF CEO Compensation, September 16th 2019

Is Bilfinger SE Growing?

Bilfinger SE has increased its earnings per share (EPS) by an average of 74% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.

Has Bilfinger SE Been A Good Investment?

With a total shareholder return of 4.8% over three years, Bilfinger SE has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared total CEO remuneration at Bilfinger SE with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling Bilfinger shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.