Yahoo Finance Should You Worry About CompuGroup Medical Societas Europaea's (FRA:COP) CEO Pay Cheque?
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Frank Gotthardt became the CEO of CompuGroup Medical Societas Europaea (FRA:COP) in 2008. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for CompuGroup Medical Societas Europaea
How Does Frank Gotthardt's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CompuGroup Medical Societas Europaea has a market cap of €3.3b, and is paying total annual CEO compensation of €4.2m. (This number is for the twelve months until December 2018). We note that's an increase of 101% above last year. We think total compensation is more important but we note that the CEO salary is lower, at €800k. We examined companies with market caps from €1.8b to €5.7b, and discovered that the median CEO total compensation of that group was €2.5m.
It would therefore appear that CompuGroup Medical Societas Europaea pays Frank Gotthardt more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at CompuGroup Medical Societas Europaea, below.
Is CompuGroup Medical Societas Europaea Growing?
CompuGroup Medical Societas Europaea has increased its earnings per share (EPS) by an average of 35% a year, over the last three years (using a line of best fit). Its revenue is up 20% over last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has CompuGroup Medical Societas Europaea Been A Good Investment?
Most shareholders would probably be pleased with CompuGroup Medical Societas Europaea for providing a total return of 96% over three years. 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...
We compared total CEO remuneration at CompuGroup Medical Societas Europaea with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying CompuGroup Medical Societas Europaea shares with their own money (free access).
If you want to buy a stock that is better than CompuGroup Medical Societas Europaea, this free list of high return, low debt companies is a great place to look.
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.
