The CEO of Bechtle AG (ETR:BC8) is Thomas Olemotz. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Thomas Olemotz's Compensation Compare With Similar Sized Companies?
According to our data, Bechtle AG has a market capitalization of €6.5b, and paid its CEO total annual compensation worth €3.5m over the year to December 2019. That's a modest increase of 7.7% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €2.0m. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €3.3m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Bechtle stands. Talking in terms of the sector, salary represented approximately 49% of total compensation out of all the companies we analysed, while other remuneration made up 51% of the pie. Bechtle does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
That means Thomas Olemotz receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Bechtle has changed over time.
Is Bechtle AG Growing?
Over the last three years Bechtle AG has seen earnings per share (EPS) move in a positive direction by an average of 18% per year (using a line of best fit). In the last year, its revenue is up 19%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bechtle AG Been A Good Investment?
Boasting a total shareholder return of 181% over three years, Bechtle AG has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Thomas Olemotz is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! On another note, we've spotted 1 warning sign for Bechtle 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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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.