How Much Is Semperit Holding's (VIE:SEM) CEO Getting Paid?

Martin Füllenbach became the CEO of Semperit Aktiengesellschaft Holding (VIE:SEM) in 2017, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Semperit Holding.

View our latest analysis for Semperit Holding

Comparing Semperit Aktiengesellschaft Holding's CEO Compensation With the industry

Our data indicates that Semperit Aktiengesellschaft Holding has a market capitalization of €348m, and total annual CEO compensation was reported as €1.2m for the year to December 2019. That's a notable increase of 69% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €526k.

In comparison with other companies in the industry with market capitalizations ranging from €170m to €680m, the reported median CEO total compensation was €822k. This suggests that Martin Füllenbach is paid more than the median for the industry.

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. Semperit Holding sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Semperit Aktiengesellschaft Holding's Growth Numbers

Over the last three years, Semperit Aktiengesellschaft Holding has shrunk its earnings per share by 35% per year. Its revenue is down 5.0% over the previous year.

Few shareholders would be pleased to read that earnings have declined. And the fact that revenue is down year on year arguably paints an ugly picture. 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 Semperit Aktiengesellschaft Holding Been A Good Investment?

Given the total shareholder loss of 34% over three years, many shareholders in Semperit Aktiengesellschaft Holding are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Semperit Holding pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, earnings growth has also been negative during this period. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Semperit Holding that investors should be aware of in a dynamic business environment.

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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