Yahoo Finance Is Siltronic AG's (ETR:WAF) CEO Overpaid Relative To Its Peers?
In 2010 Christoph von Plotho was appointed CEO of Siltronic AG (ETR:WAF). First, this article will compare CEO compensation with compensation at similar sized 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Siltronic
How Does Christoph von Plotho's Compensation Compare With Similar Sized Companies?
According to our data, Siltronic AG has a market capitalization of €2.7b, and paid its CEO total annual compensation worth €1.7m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €550k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from €1.8b to €5.8b, and the median CEO total compensation was €1.8m.
So Christoph von Plotho 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 Siltronic, below.
Is Siltronic AG Growing?
On average over the last three years, Siltronic AG has grown earnings per share (EPS) by 66% each year (using a line of best fit). In the last year, its revenue is down 3.0%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Siltronic AG Been A Good Investment?
Boasting a total shareholder return of 123% over three years, Siltronic AG has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Remuneration for Christoph von Plotho is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Siltronic shares with their own money (free access).
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.
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.
