Yahoo Finance How Should Investors React To MAN SE’s (FRA:MAN) CEO Pay?
In 2015 Joachim Drees was appointed CEO of MAN SE (FRA:MAN). This analysis aims first to contrast CEO compensation with other large companies. 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 MAN
How Does Joachim Drees’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MAN SE has a market cap of €13b, and is paying total annual CEO compensation of €1.7m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations over €7.1b and the median CEO compensation was €3.9m.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at MAN has changed from year to year.
Is MAN SE Growing?
Over the last three years MAN SE has grown its earnings per share (EPS) by an average of 71% per year. Its revenue is up 6.8% over last year.
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 MAN SE Been A Good Investment?
With a total shareholder return of 6.3% over three years, MAN SE has done okay by shareholders. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
It appears that MAN SE remunerates its CEO below most large companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven’t been top notch, there is nothing to suggest to us that Joachim Drees is overcompensated.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. So you may want to check if insiders are buying MAN SE shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
