Is Intershop Holding AG's (VTX:ISN) CEO Being Overpaid?

Cyrill Schneuwly has been the CEO of Intershop Holding AG (VTX:ISN) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Intershop Holding

How Does Cyrill Schneuwly's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Intershop Holding AG has a market cap of CHF992m, and is paying total annual CEO compensation of CHF1.2m. (This is based on the year to 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CHF500k. When we examined a selection of companies with market caps ranging from CHF398m to CHF1.6b, we found the median CEO compensation was CHF1.0m.

That means Cyrill Schneuwly receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Intershop Holding has changed over time.

Is Intershop Holding AG Growing?

On average over the last three years, Intershop Holding AG has grown earnings per share (EPS) by 2.1% each year (using a line of best fit). Its revenue is up 22% over last year.

I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Intershop Holding AG Been A Good Investment?

Most shareholders would probably be pleased with Intershop Holding AG for providing a total return of 37% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Remuneration for Cyrill Schneuwly is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if Intershop Holding insiders are buying or selling shares.

Or you might prefer gaze uponthis detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.