Yahoo Finance Here's What We Think About MAN SE's (ETR:MAN) CEO Pay
Joachim Gerhard Drees has been the CEO of MAN SE (ETR:MAN) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 MAN
How Does Joachim Gerhard Drees's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that MAN SE has a market cap of €6.1b, and reported total annual CEO compensation of €1.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €624k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.6b to €11b. The median total CEO compensation was €3.4m.
A first glance this seems like a real positive for shareholders, since Joachim Gerhard Drees is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at MAN has changed over time.
Is MAN SE Growing?
MAN SE has increased its earnings per share (EPS) by an average of 64% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 25%.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has MAN SE Been A Good Investment?
Since shareholders would have lost about 50% over three years, some MAN SE shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It looks like MAN SE pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we don't think, Joachim Gerhard Drees is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Shareholders may want to check for free if MAN insiders are buying or selling shares.
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.
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