How Much Is Wienerberger AG (VIE:WIE) Paying Its CEO?

Heimo Scheuch became the CEO of Wienerberger AG (VIE:WIE) in 2009, 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.

Check out our latest analysis for Wienerberger

How Does Total Compensation For Heimo Scheuch Compare With Other Companies In The Industry?

Our data indicates that Wienerberger AG has a market capitalization of €2.6b, and total annual CEO compensation was reported as €2.4m for the year to December 2019. That's a notable decrease of 30% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €880k.

For comparison, other companies in the same industry with market capitalizations ranging between €1.7b and €5.4b had a median total CEO compensation of €1.7m. Accordingly, our analysis reveals that Wienerberger AG pays Heimo Scheuch north of the industry median. What's more, Heimo Scheuch holds €3.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. There isn't a significant difference between Wienerberger and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Wienerberger AG's Growth

Wienerberger AG saw earnings per share stay pretty flat over the last three years. Its revenue is down 1.8% over the previous year.

A lack of EPS improvement is not good to see. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Wienerberger AG Been A Good Investment?

Wienerberger AG has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we touched on above, Wienerberger AG is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, EPS has not grown in three years, failing to impress us. And shareholder returns are decent but not great. So you can understand why we do not think CEO compensation is particularly modest!

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Wienerberger that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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