Yahoo Finance Should You Worry About InnoTec TSS AG's (FRA:TSS) CEO Salary Level?
Gerson Link is the CEO of InnoTec TSS AG (FRA:TSS). 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 InnoTec TSS
How Does Gerson Link's Compensation Compare With Similar Sized Companies?
According to our data, InnoTec TSS AG has a market capitalization of €79m, and paid its CEO total annual compensation worth €550k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €220k. We looked at a group of companies with market capitalizations under €185m, and the median CEO total compensation was €426k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of InnoTec TSS. Talking in terms of the sector, salary represented approximately 50% of total compensation out of all the companies we analysed, while other remuneration made up 50% of the pie. InnoTec TSS is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
So Gerson Link receives a similar amount to the median CEO pay, amongst 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. The graphic below shows how CEO compensation at InnoTec TSS has changed from year to year.
Is InnoTec TSS AG Growing?
On average over the last three years, InnoTec TSS AG has shrunk earnings per share by 14% each year (measured with a line of best fit). In the last year, its revenue changed by just 0.7%.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has InnoTec TSS AG Been A Good Investment?
With a three year total loss of 46%, InnoTec TSS AG would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Gerson Link is paid around what is normal for the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! Moving away from CEO compensation for the moment, we've identified 4 warning signs for InnoTec TSS that you should be aware of before investing.
If you want to buy a stock that is better than InnoTec TSS, this free list of high return, low debt companies is a great place to look.
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.
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