Cyrill Schneuwly has been the CEO of Intershop Holding AG (VTX:ISN) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Intershop Holding.
Comparing Intershop Holding AG's CEO Compensation With the industry
According to our data, Intershop Holding AG has a market capitalization of CHF1.1b, and paid its CEO total annual compensation worth CHF1.3m over the year to December 2019. That's a slight decrease of 7.7% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF500k.
For comparison, other companies in the same industry with market capitalizations ranging between CHF914m and CHF2.9b had a median total CEO compensation of CHF1.1m. This suggests that Intershop Holding remunerates its CEO largely in line with the industry average. Moreover, Cyrill Schneuwly also holds CHF3.8m worth of Intershop Holding stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 55% of total compensation represents salary and 45% is other remuneration. Intershop Holding sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Intershop Holding AG's Growth
Intershop Holding AG has seen its earnings per share (EPS) increase by 5.3% a year over the past three years. Its revenue is down 40% over the previous year.
We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Intershop Holding AG Been A Good Investment?
Boasting a total shareholder return of 41% over three years, Intershop Holding AG has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As we touched on above, Intershop Holding AG is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the company's EPS growth numbers over the last three years is not that impressive. Meanwhile, shareholder returns have remained positive over the same time frame. We would like to see EPS growth from the business, although we wouldn't say the CEO compensation is high.
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 Intershop Holding that investors should think about before committing capital to this stock.
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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