Thomas Birtel has been the CEO of Strabag SE (VIE:STR) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Thomas Birtel’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Strabag SE has a market cap of €2.8b, and reported total annual CEO compensation of €1.9m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €703k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from €1.8b to €5.7b, and discovered that the median CEO total compensation of that group was €2.3m.
So Thomas Birtel receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Strabag has changed over time.
Is Strabag SE Growing?
Strabag SE has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Strabag SE Been A Good Investment?
Given the total loss of 15% over three years, many shareholders in Strabag SE are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Thomas Birtel is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Strabag (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.
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