Reinhard Ploss has been the CEO of Infineon Technologies AG (ETR:IFX) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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.
How Does Reinhard Ploss's Compensation Compare With Similar Sized Companies?
According to our data, Infineon Technologies AG has a market capitalization of €27b, and paid its CEO total annual compensation worth €3.0m over the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.2m. We looked at a group of companies with market capitalizations over €7.3b and the median CEO total compensation was €4.0m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Reinhard Ploss is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Infineon Technologies has changed over time.
Is Infineon Technologies AG Growing?
Over the last three years Infineon Technologies AG has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 5.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Infineon Technologies AG Been A Good Investment?
I think that the total shareholder return of 33%, over three years, would leave most Infineon Technologies AG shareholders smiling. 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.
Reinhard Ploss is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Infineon Technologies insiders are buying or selling shares.
Important note: Infineon Technologies may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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