What Did Pfeiffer Vacuum Technology's (ETR:PFV) CEO Take Home Last Year?

Eric Taberlet has been the CEO of Pfeiffer Vacuum Technology AG (ETR:PFV) since 2017, 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 Pfeiffer Vacuum Technology.

See our latest analysis for Pfeiffer Vacuum Technology

How Does Total Compensation For Eric Taberlet Compare With Other Companies In The Industry?

Our data indicates that Pfeiffer Vacuum Technology AG has a market capitalization of €1.6b, and total annual CEO compensation was reported as €606k for the year to December 2019. We note that's an increase of 26% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €290k.

For comparison, other companies in the same industry with market capitalizations ranging between €843m and €2.7b had a median total CEO compensation of €1.8m. In other words, Pfeiffer Vacuum Technology pays its CEO lower than the industry median.

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. Pfeiffer Vacuum Technology is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Pfeiffer Vacuum Technology AG's Growth

Pfeiffer Vacuum Technology AG has reduced its earnings per share by 13% a year over the last three years. In the last year, its revenue is down 2.6%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Pfeiffer Vacuum Technology AG Been A Good Investment?

Since shareholders would have lost about 4.1% over three years, some Pfeiffer Vacuum Technology AG investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Pfeiffer Vacuum Technology pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Eric is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Pfeiffer Vacuum Technology (free visualization of insider trades).

Switching gears from Pfeiffer Vacuum Technology, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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