Does Frauenthal Holding's (VIE:FKA) CEO Salary Compare Well With The Performance Of The Company?

This article will reflect on the compensation paid to Hannes Winkler who has served as CEO of Frauenthal Holding AG (VIE:FKA) since 2018. This analysis will also assess whether Frauenthal Holding pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Frauenthal Holding

Comparing Frauenthal Holding AG's CEO Compensation With the industry

Our data indicates that Frauenthal Holding AG has a market capitalization of €155m, and total annual CEO compensation was reported as €448k for the year to December 2019. That's a notable increase of 9.0% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €448k.

In comparison with other companies in the industry with market capitalizations ranging from €86m to €344m, the reported median CEO total compensation was €559k. From this we gather that Hannes Winkler is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Speaking on a company level, Frauenthal Holding prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Frauenthal Holding AG's Growth Numbers

Frauenthal Holding AG has seen its earnings per share (EPS) increase by 39% a year over the past three years. Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Frauenthal Holding AG Been A Good Investment?

Given the total shareholder loss of 4.8% over three years, many shareholders in Frauenthal Holding AG are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Frauenthal Holding rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Frauenthal Holding AG is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. But earnings growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when earnings growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Frauenthal Holding that investors should be aware of in a dynamic business environment.

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

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