Yahoo Finance How Much Did ElringKlinger AG's (FRA:ZIL2) CEO Pocket Last Year?
Stefan Wolf became the CEO of ElringKlinger AG (FRA:ZIL2) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
See our latest analysis for ElringKlinger
How Does Stefan Wolf's Compensation Compare With Similar Sized Companies?
According to our data, ElringKlinger AG has a market capitalization of €444m, and pays its CEO total annual compensation worth €2.0m. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €554k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €178m to €711m. The median total CEO compensation was €703k.
Thus we can conclude that Stefan Wolf receives more in total compensation than the median of a group of companies in the same market, and of similar size to ElringKlinger AG. However, this doesn't necessarily mean the pay is too high. 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 ElringKlinger, below.
Is ElringKlinger AG Growing?
ElringKlinger AG has reduced its earnings per share by an average of 16% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 2.1%.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. 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 ElringKlinger AG Been A Good Investment?
Since shareholders would have lost about 64% over three years, some ElringKlinger AG shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount ElringKlinger AG pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling ElringKlinger shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
