How Much Is UBM Development AG (VIE:UBS) Paying Its CEO?

Thomas Winkler became the CEO of UBM Development AG (VIE:UBS) in 2016, 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 UBM Development.

Check out our latest analysis for UBM Development

How Does Total Compensation For Thomas Winkler Compare With Other Companies In The Industry?

Our data indicates that UBM Development AG has a market capitalization of €200m, and total annual CEO compensation was reported as €926k for the year to December 2019. This means that the compensation hasn't changed much from last year. Notably, the salary which is €540.0k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from €86m to €344m, we found that the median CEO total compensation was €423k. Hence, we can conclude that Thomas Winkler is remunerated higher than the industry median.

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. UBM Development is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at UBM Development AG's Growth Numbers

UBM Development AG has seen its earnings per share (EPS) increase by 20% a year over the past three years. In the last year, its revenue is down 3.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 UBM Development AG Been A Good Investment?

With a three year total loss of 21% for the shareholders, UBM Development AG would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, UBM Development pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for UBM Development (1 can't be ignored!) that you should be aware of before investing here.

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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