Yahoo Finance Is Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft's (ETR:MUV2) CEO Pay Fair?
Joachim Wenning has been the CEO of Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft (ETR:MUV2) since 2017. This analysis aims first to contrast CEO compensation with other large companies. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Münchener Rückversicherungs-Gesellschaft
How Does Joachim Wenning's Compensation Compare With Similar Sized Companies?
According to our data, Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft has a market capitalization of €38b, and paid its CEO total annual compensation worth €5.6m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €2.2m. 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 took a group of companies with market capitalizations over €7.2b, and calculated the median CEO total compensation to be €4.0m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
As you can see, Joachim Wenning is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Münchener Rückversicherungs-Gesellschaft has changed over time.
Is Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft Growing?
On average over the last three years, Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft has grown earnings per share (EPS) by 5.6% each year (using a line of best fit). Its revenue is up 4.4% over last year.
I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft Been A Good Investment?
Boasting a total shareholder return of 74% over three years, Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared total CEO remuneration at Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Münchener Rückversicherungs-Gesellschaft (free visualization of insider trades).
If you want to buy a stock that is better than Münchener Rückversicherungs-Gesellschaft, this free list of high return, low debt companies is a great place to look.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
