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Does GFT Technologies SE's (ETR:GFT) CEO Pay Reflect Performance?

Marika Lulay became the CEO of GFT Technologies SE (ETR:GFT) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

View our latest analysis for GFT Technologies

How Does Marika Lulay's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that GFT Technologies SE has a market cap of €297m, and reported total annual CEO compensation of €819k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €380k. When we examined a selection of companies with market caps ranging from €180m to €722m, we found the median CEO total compensation was €739k.

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That means Marika Lulay receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at GFT Technologies, below.

XTRA:GFT CEO Compensation, December 4th 2019
XTRA:GFT CEO Compensation, December 4th 2019

Is GFT Technologies SE Growing?

On average over the last three years, GFT Technologies SE has shrunk earnings per share by 18% each year (measured with a line of best fit). Its revenue is up 2.0% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced 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 GFT Technologies SE Been A Good Investment?

Since shareholders would have lost about 36% over three years, some GFT Technologies SE shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at GFT Technologies.

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

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.