How Much is FACC's (VIE:FACC) CEO Getting Paid?

Robert Machtlinger has been the CEO of FACC AG (VIE:FACC) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for FACC

Comparing FACC AG's CEO Compensation With the industry

Our data indicates that FACC AG has a market capitalization of €417m, and total annual CEO compensation was reported as €598k for the year to December 2019. We note that's an increase of 23% above last year. We note that the salary portion, which stands at €332.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from €165m to €659m, we found that the median CEO total compensation was €597k. From this we gather that Robert Machtlinger is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. FACC is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

FACC AG's Growth

FACC AG has reduced its earnings per share by 60% a year over the last three years. Its revenue is down 23% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has FACC AG Been A Good Investment?

With a three year total loss of 35% for the shareholders, FACC AG would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, FACC pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for FACC that you should be aware of before investing.

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.

If you decide to trade FACC, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.