Yahoo Finance Is Kuehne + Nagel International AG’s (VTX:KNIN) CEO Salary Justified?
Detlef Trefzger became the CEO of Kuehne + Nagel International AG (VTX:KNIN) in 2013. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Kuehne + Nagel International
How Does Detlef Trefzger’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Kuehne + Nagel International AG has a market cap of CHF16.6b, and is paying total annual CEO compensation of CHF4m. That’s a notable increase of 246% on last year. We looked at a group of companies with market capitalizations over CHF8.0b and the median CEO compensation was CHF5m.
So Detlef Trefzger receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Kuehne + Nagel International, below.
Is Kuehne + Nagel International AG Growing?
Over the last three years Kuehne + Nagel International AG has grown its earnings per share (EPS) by an average of 4.7% per year. It achieved revenue growth of 15% over the last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Kuehne + Nagel International AG Been A Good Investment?
With a total shareholder return of 13% over three years, Kuehne + Nagel International AG shareholders would, in general, be reasonably content. 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…
Detlef Trefzger is paid around what is normal the leaders of larger companies.
The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. But we don’t think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kuehne + Nagel International AG (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.
