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Should You Worry About CENIT Aktiengesellschaft's (ETR:CSH) CEO Salary Level?

Kurt Bengel is the CEO of CENIT Aktiengesellschaft (ETR:CSH). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for CENIT

How Does Kurt Bengel's Compensation Compare With Similar Sized Companies?

According to our data, CENIT Aktiengesellschaft has a market capitalization of €112m, and paid its CEO total annual compensation worth €541k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €242k. We examined a group of similar sized companies, with market capitalizations of below €182m. The median CEO total compensation in that group is €196k.

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Thus we can conclude that Kurt Bengel receives more in total compensation than the median of a group of companies in the same market, and of similar size to CENIT Aktiengesellschaft. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at CENIT, below.

XTRA:CSH CEO Compensation, November 11th 2019
XTRA:CSH CEO Compensation, November 11th 2019

Is CENIT Aktiengesellschaft Growing?

On average over the last three years, CENIT Aktiengesellschaft has shrunk earnings per share by 11% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has CENIT Aktiengesellschaft Been A Good Investment?

Since shareholders would have lost about 27% over three years, some CENIT Aktiengesellschaft shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at CENIT Aktiengesellschaft with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CENIT.

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.

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.

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. Thank you for reading.