Does Rosenbauer International AG’s (VIE:ROS) CEO Pay Reflect Performance?

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Dieter Siegel became the CEO of Rosenbauer International AG (VIE:ROS) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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 Rosenbauer International

How Does Dieter Siegel’s Compensation Compare With Similar Sized Companies?

According to our data, Rosenbauer International AG has a market capitalization of €272m, and pays its CEO total annual compensation worth €495k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €404k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €177m to €706m. The median total CEO compensation was €505k.

So Dieter Siegel is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Rosenbauer International has changed over time.

WBAG:ROS CEO Compensation February 11th 19
WBAG:ROS CEO Compensation February 11th 19

Is Rosenbauer International AG Growing?

Rosenbauer International AG has reduced its earnings per share by an average of 33% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -8.2%.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Rosenbauer International AG Been A Good Investment?

Since shareholders would have lost about 11% over three years, some Rosenbauer International AG shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Remuneration for Dieter Siegel is close enough to the median pay for a CEO of a similar sized company .

The company isn’t growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don’t think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rosenbauer International.

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.

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.