Yahoo Finance Does Deutsche Konsum REIT-AG's (ETR:DKG) CEO Pay Reflect Performance?
The CEO of Deutsche Konsum REIT-AG (ETR:DKG) is Rolf Elgeti. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Deutsche Konsum REIT-AG
How Does Rolf Elgeti's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Deutsche Konsum REIT-AG has a market cap of €598m, and reported total annual CEO compensation of €71k for the year to September 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth €71k. We examined companies with market caps from €367m to €1.5b, and discovered that the median CEO total compensation of that group was €1.1m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 49% of total compensation out of all the companies we analysed, while other remuneration made up 51% of the pie. At the company level, Deutsche Konsum REIT-AG pays Rolf Elgeti solely through a salary, preferring to go down a conventional route.
Most shareholders would consider it a positive that Rolf Elgeti takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business. You can see, below, how CEO compensation at Deutsche Konsum REIT-AG has changed over time.
Is Deutsche Konsum REIT-AG Growing?
Over the last three years Deutsche Konsum REIT-AG has shrunk its earnings per share by an average of 1.2% per year (measured with a line of best fit). It achieved revenue growth of 38% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Deutsche Konsum REIT-AG Been A Good Investment?
Boasting a total shareholder return of 106% over three years, Deutsche Konsum REIT-AG has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
It looks like Deutsche Konsum REIT-AG pays its CEO less than similar sized companies.
It's well worth noting that while Rolf Elgeti is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. On another note, Deutsche Konsum REIT-AG has 4 warning signs (and 1 which is significant) we think you should know about.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
