How Is Rosenbauer International's (VIE:ROS) CEO Paid Relative To Peers?

Dieter Siegel became the CEO of Rosenbauer International AG (VIE:ROS) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Rosenbauer International

How Does Total Compensation For Dieter Siegel Compare With Other Companies In The Industry?

According to our data, Rosenbauer International AG has a market capitalization of €245m, and paid its CEO total annual compensation worth €786k over the year to December 2019. We note that's a decrease of 18% compared to last year. We note that the salary portion, which stands at €403.9k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between €82m and €330m had a median total CEO compensation of €471k. Accordingly, our analysis reveals that Rosenbauer International AG pays Dieter Siegel north of the industry median.

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. Our data reveals that Rosenbauer International allocates salary more or less in line with the wider market. 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 Rosenbauer International AG's Growth Numbers

Rosenbauer International AG has reduced its earnings per share by 15% a year over the last three years. Its revenue is up 11% over the last year.

Few shareholders would be pleased to read that EPS have declined. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, 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 28% over three years, some Rosenbauer International AG investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Dieter is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. What's equally worrying is that the company isn't growing by our analysis. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Rosenbauer International (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Important note: Rosenbauer International is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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