Yahoo Finance Is Medios AG's (ETR:ILM1) CEO Pay Fair?
Manfred Schneider became the CEO of Medios AG (ETR:ILM1) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Medios
How Does Manfred Schneider's Compensation Compare With Similar Sized Companies?
According to our data, Medios AG has a market capitalization of €475m, and paid its CEO total annual compensation worth €123k over the year to December 2018. Notably, the salary of €120k is the vast majority of the CEO compensation. We examined companies with market caps from €184m to €736m, and discovered that the median CEO total compensation of that group was €990k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Medios stands. Talking in terms of the sector, salary represented approximately 79% of total compensation out of all the companies we analysed, while other remuneration made up 21% of the pie. Investors will find it interesting that Medios pays the bulk of its rewards through a traditional salary, instead of non-salary benefits.
Most shareholders would consider it a positive that Manfred Schneider takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see a visual representation of the CEO compensation at Medios, below.
Is Medios AG Growing?
Medios AG has seen earnings per share (EPS) move positively by an average of 97% a year, over the last three years (using a line of best fit). It achieved revenue growth of 57% over the last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Medios AG Been A Good Investment?
Boasting a total shareholder return of 230% over three years, Medios AG 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...
It appears that Medios AG remunerates its CEO below most similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Manfred Schneider deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. On another note, we've spotted 2 warning signs for Medios that investors should look into moving forward.
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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