Yahoo Finance How Much Did Vonovia SE’s (ETR:VNA) CEO Pocket Last Year?
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Rolf Buch became the CEO of Vonovia SE (ETR:VNA) in 2013. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Vonovia
How Does Rolf Buch’s Compensation Compare With Similar Sized Companies?
According to our data, Vonovia SE has a market capitalization of €23b, and pays its CEO total annual compensation worth €4.9m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at €1.2m. When we examined a group of companies with market caps over €7.1b, we found that their median CEO compensation was €4.1m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Rolf Buch is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Vonovia has changed over time.
Is Vonovia SE Growing?
On average over the last three years, Vonovia SE has grown earnings per share (EPS) by 37% each year (using a line of best fit). In the last year, its revenue is up 3.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Vonovia SE Been A Good Investment?
I think that the total shareholder return of 71%, over three years, would leave most Vonovia SE shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Rolf Buch is paid around the same as most CEOs of large companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Vonovia.
Important note: Vonovia may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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