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Should You Worry About artnet AG’s (FRA:ART) CEO Pay?

Jacob Pabst has been the CEO of artnet AG (FRA:ART) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.

Check out our latest analysis for artnet

How Does Jacob Pabst’s Compensation Compare With Similar Sized Companies?

Our data indicates that artnet AG is worth €19m, and total annual CEO compensation is €334k. That’s a fairly small increase of 1.7% on year before. We took a group of companies with market capitalizations below €176m, and calculated the median CEO compensation to be €258k.

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So Jacob Pabst 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 artnet has changed over time.

DB:ART CEO Compensation November 6th 18
DB:ART CEO Compensation November 6th 18

Is artnet AG Growing?

artnet AG has increased its earnings per share (EPS) by an average of 74% a year, over the last three years Its revenue is down -3.5% over last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end.

Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has artnet AG Been A Good Investment?

I think that the total shareholder return of 75%, over three years, would leave most artnet AG shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Remuneration for Jacob Pabst is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling artnet AG (free visualization of insider trades).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.