Yahoo Finance Is ZEAL Network SE’s (ETR:TIM) CEO Paid Enough Relative To Peers?
Helmut Becker became the CEO of ZEAL Network SE (ETR:TIM) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for ZEAL Network
How Does Helmut Becker’s Compensation Compare With Similar Sized Companies?
Our data indicates that ZEAL Network SE is worth €173m, and total annual CEO compensation is €1m. That’s a fairly small increase of 3.0% on year before. We looked at a group of companies with market capitalizations from €88m to €352m, and the median CEO compensation was €587k.
As you can see, Helmut Becker is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ZEAL Network SE is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at ZEAL Network has changed from year to year.
Is ZEAL Network SE Growing?
ZEAL Network SE has increased its earnings per share (EPS) by an average of 41% a year, over the last three years It achieved revenue growth of 5.8% over the 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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has ZEAL Network SE Been A Good Investment?
Since shareholders would have lost about 41% over three years, some ZEAL Network SE shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by ZEAL Network SE, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling ZEAL Network SE shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.
