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How Much is Beiersdorf Aktiengesellschaft’s (ETR:BEI) CEO Getting Paid?

In 2012 Stefan Heidenreich was appointed CEO of Beiersdorf Aktiengesellschaft (ETR:BEI). First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Beiersdorf

How Does Stefan Heidenreich’s Compensation Compare With Similar Sized Companies?

Our data indicates that Beiersdorf Aktiengesellschaft is worth €21.2b, and total annual CEO compensation is €3m. That’s below the compensation, last year. We took a group of companies with market capitalizations over €7.0b, and calculated the median CEO compensation to be €4m.

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A first glance this seems like a real positive for shareholders, since Stefan Heidenreich is paid less than the average compensation paid by other large companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Beiersdorf, below.

XTRA:BEI CEO Compensation October 26th 18
XTRA:BEI CEO Compensation October 26th 18

Is Beiersdorf Aktiengesellschaft Growing?

Beiersdorf Aktiengesellschaft has increased its earnings per share (EPS) by an average of 4.2% a year, over the last three years It achieved revenue growth of 3.6% over the last year.

I would argue that the improvement in revenue isn’t particularly impressive, 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 Beiersdorf Aktiengesellschaft Been A Good Investment?

Beiersdorf Aktiengesellschaft has generated a total shareholder return of 13% 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…

Beiersdorf Aktiengesellschaft is currently paying its CEO below what is normal for large companies.

Stefan Heidenreich receives relatively low remuneration compared to other large companies. But the company isn’t exactly firing on all cylinders, from my perspective. But on this analysis I see no issue with the CEO compensation. Shareholders may want to check for free if Beiersdorf Aktiengesellschaft insiders are buying or selling shares.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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.