Yahoo Finance How Much is Deutsche Post AG's (ETR:DPW) CEO Getting Paid?
Frank Appel has been the CEO of Deutsche Post AG (ETR:DPW) since 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Deutsche Post
How Does Frank Appel's Compensation Compare With Similar Sized Companies?
Our data indicates that Deutsche Post AG is worth €37b, and total annual CEO compensation was reported as €6.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €2.1m. 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 €7.3b, and calculated the median CEO total compensation to be €4.3m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
Thus we can conclude that Frank Appel receives more in total compensation than the median of a group of large companies in the same market as Deutsche Post AG. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Deutsche Post, below.
Is Deutsche Post AG Growing?
Deutsche Post AG has reduced its earnings per share by an average of 4.2% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 3.9% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Deutsche Post AG Been A Good Investment?
Deutsche Post AG has generated a total shareholder return of 19% over three years, so most shareholders would 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...
We compared the total CEO remuneration paid by Deutsche Post AG, and compared it to remuneration at a group of other large companies. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. And while shareholder returns have been respectable, they have hardly been superb. So you may want to delve deeper, because we don't think the CEO pay is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Deutsche Post (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.
