Yahoo Finance Is Bechtle AG's (ETR:BC8) CEO Pay Fair?
Thomas Olemotz is the CEO of Bechtle AG (ETR:BC8). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Bechtle
How Does Thomas Olemotz's Compensation Compare With Similar Sized Companies?
Our data indicates that Bechtle AG is worth €3.8b, and total annual CEO compensation is €3.3m. (This is based on the year to December 2018). That's a notable increase of 8.2% on last year. 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 €1.8b to €5.7b, and the median CEO total compensation was €2.2m.
It would therefore appear that Bechtle AG pays Thomas Olemotz more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Bechtle has changed over time.
Is Bechtle AG Growing?
Bechtle AG has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 21%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Bechtle AG Been A Good Investment?
I think that the total shareholder return of 104%, over three years, would leave most Bechtle AG shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared total CEO remuneration at Bechtle AG 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. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Bechtle insiders are buying or selling shares.
If you want to buy a stock that is better than Bechtle, this free list of high return, low debt companies is a great place to look.
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.
