Yahoo Finance Is Fraport AG (ETR:FRA) Excessively Paying Its CEO?
Stefan Schulte became the CEO of Fraport AG (ETR:FRA) in 2009. 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. 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.
Check out our latest analysis for Fraport
How Does Stefan Schulte's Compensation Compare With Similar Sized Companies?
According to our data, Fraport AG has a market capitalization of €6.2b, and paid its CEO total annual compensation worth €2.7m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €415k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €3.2m.
That means Stefan Schulte receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Fraport, below.
Is Fraport AG Growing?
On average over the last three years, Fraport AG has grown earnings per share (EPS) by 14% each year (using a line of best fit). Its revenue is up 16% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Fraport AG Been A Good Investment?
Fraport AG has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Stefan Schulte is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Fraport (free visualization of insider trades).
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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