Yahoo Finance Does ElringKlinger AG's (ETR:ZIL2) CEO Salary Compare Well With Others?
In 2006 Stefan Wolf was appointed CEO of ElringKlinger AG (ETR:ZIL2). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for ElringKlinger
How Does Stefan Wolf's Compensation Compare With Similar Sized Companies?
Our data indicates that ElringKlinger AG is worth €384m, and total annual CEO compensation was reported as €1.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €558k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from €182m to €728m, and the median CEO total compensation was €735k.
As you can see, Stefan Wolf is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ElringKlinger AG is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at ElringKlinger, below.
Is ElringKlinger AG Growing?
On average over the last three years, ElringKlinger AG has shrunk earnings per share by 39% each year (measured with a line of best fit). Its revenue is up 1.7% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has ElringKlinger AG Been A Good Investment?
With a three year total loss of 59%, ElringKlinger AG would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at ElringKlinger AG with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ElringKlinger (free visualization of insider trades).
If you want to buy a stock that is better than ElringKlinger, this free list of high return, low debt companies is a great place to look.
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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.
