Yahoo Finance Should You Be Pleased About The CEO Pay At RWE Aktiengesellschaft's (ETR:RWE)
Rolf Schmitz has been the CEO of RWE Aktiengesellschaft (ETR:RWE) since 2016. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for RWE
How Does Rolf Schmitz's Compensation Compare With Similar Sized Companies?
Our data indicates that RWE Aktiengesellschaft is worth €16b, and total annual CEO compensation was reported as €4.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €1.2m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a group of companies with market caps over €7.2b, we found that their median CEO total compensation was €4.0m. (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).
So Rolf Schmitz receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at RWE, below.
Is RWE Aktiengesellschaft Growing?
Over the last three years RWE Aktiengesellschaft has grown its earnings per share (EPS) by an average of 64% per year (using a line of best fit). Its revenue is down 3.1% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has RWE Aktiengesellschaft Been A Good Investment?
Boasting a total shareholder return of 145% over three years, RWE Aktiengesellschaft has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Rolf Schmitz is paid around what is normal the leaders of larger companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if RWE insiders are buying or selling shares.
If you want to buy a stock that is better than RWE, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
