What We Learned About Frauenthal Holding's (VIE:FKA) CEO Compensation

Hannes Winkler has been the CEO of Frauenthal Holding AG (VIE:FKA) since 2018, 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.

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 €150m, and total annual CEO compensation was reported as €448k for the year to December 2019. We note that's an increase of 9.0% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €448k.

For comparison, other companies in the same industry with market capitalizations ranging between €84m and €335m had a median total CEO compensation of €512k. This suggests that Frauenthal Holding remunerates its CEO largely in line with the industry average.

On an industry level, roughly 59% of total compensation represents salary and 41% 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 is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Frauenthal Holding AG's Growth Numbers

Over the last three years, Frauenthal Holding AG has shrunk its earnings per share by 34% per year. Its revenue is down 8.5% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Frauenthal Holding AG Been A Good Investment?

With a three year total loss of 28% for the shareholders, Frauenthal Holding AG would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

Frauenthal Holding pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Hannes is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Frauenthal Holding (1 is a bit concerning!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.
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