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Is YOC AG (ETR:YOC) Overpaying Its CEO?

In 2005 Dirk-Hilmar Kraus was appointed CEO of YOC AG (ETR:YOC). 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.

View our latest analysis for YOC

How Does Dirk-Hilmar Kraus's Compensation Compare With Similar Sized Companies?

According to our data, YOC AG has a market capitalization of €16m, and pays its CEO total annual compensation worth €219k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €150k. We examined a group of similar sized companies, with market capitalizations of below €180m. The median CEO total compensation in that group is €217k.

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So Dirk-Hilmar Kraus 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.

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

XTRA:YOC CEO Compensation, July 30th 2019
XTRA:YOC CEO Compensation, July 30th 2019

Is YOC AG Growing?

Over the last three years YOC AG has grown its earnings per share (EPS) by an average of 57% per year (using a line of best fit). Its revenue is up 4.9% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has YOC AG Been A Good Investment?

I think that the total shareholder return of 78%, over three years, would leave most YOC AG shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Dirk-Hilmar Kraus is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling YOC (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.