Here's What We Think About UNIQA Insurance Group's (VIE:UQA) CEO Pay

This article will reflect on the compensation paid to Andreas Brandstetter who has served as CEO of UNIQA Insurance Group AG (VIE:UQA) since 2011. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for UNIQA Insurance Group.

See our latest analysis for UNIQA Insurance Group

How Does Total Compensation For Andreas Brandstetter Compare With Other Companies In The Industry?

Our data indicates that UNIQA Insurance Group AG has a market capitalization of €2.0b, and total annual CEO compensation was reported as €1.5m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at €669k.

On examining similar-sized companies in the industry with market capitalizations between €828m and €2.6b, we discovered that the median CEO total compensation of that group was €1.6m. So it looks like UNIQA Insurance Group compensates Andreas Brandstetter in line with the median for the industry.

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. Our data reveals that UNIQA Insurance Group allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at UNIQA Insurance Group AG's Growth Numbers

Over the last three years, UNIQA Insurance Group AG has shrunk its earnings per share by 7.1% per year. Its revenue is down 1.9% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has UNIQA Insurance Group AG Been A Good Investment?

With a three year total loss of 13% for the shareholders, UNIQA Insurance Group AG would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, UNIQA Insurance Group pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for UNIQA Insurance Group that you should be aware of before investing.

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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