Yahoo Finance How Much is Deutsche Telekom AG's (ETR:DTE) CEO Getting Paid?
In 2014, Tim Höttges was appointed CEO of Deutsche Telekom AG (ETR:DTE). First, this article will compare CEO compensation with compensation at 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Deutsche Telekom
How Does Tim Höttges's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Deutsche Telekom AG has a market cap of €65b, and reported total annual CEO compensation of €6.5m for the year to December 2019. Notably, that's an increase of 12% over the year before. While we always look at total compensation first, we note that the salary component is less, at €1.5m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a group of companies with market caps over €7.3b, we found that their median CEO total compensation was €4.7m. (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).
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Deutsche Telekom stands. Speaking on an industry level, we can see that nearly 50% of total compensation represents salary, while the remainder of 50% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Deutsche Telekom, in sharp contrast to the overall sector.
As you can see, Tim Höttges is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Deutsche Telekom AG is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see a visual representation of the CEO compensation at Deutsche Telekom, below.
Is Deutsche Telekom AG Growing?
On average over the last three years, Deutsche Telekom AG has seen earnings per share (EPS) move in a favourable direction by 37% each year (using a line of best fit). In the last year, its revenue is up 4.2%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Deutsche Telekom AG Been A Good Investment?
With a three year total loss of 13%, Deutsche Telekom AG would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Deutsche Telekom AG with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. This doesn't look great when you consider CEO remuneration is up on last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. On another note, we've spotted 3 warning signs for Deutsche Telekom 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.
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