Our Take On 3U Holding's (ETR:UUU) CEO Salary

This article will reflect on the compensation paid to Michael Schmidt who has served as CEO of 3U Holding AG (ETR:UUU) since 2011. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for 3U Holding

Comparing 3U Holding AG's CEO Compensation With the industry

Our data indicates that 3U Holding AG has a market capitalization of €80m, and total annual CEO compensation was reported as €426k for the year to December 2019. That's a modest increase of 4.4% on the prior year. Notably, the salary which is €300.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below €164m, reported a median total CEO compensation of €187k. Accordingly, our analysis reveals that 3U Holding AG pays Michael Schmidt north of the industry median. Furthermore, Michael Schmidt directly owns €21m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 29% of total compensation out of all the companies we analyzed, while other remuneration made up 71% of the pie. 3U Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at 3U Holding AG's Growth Numbers

Over the past three years, 3U Holding AG has seen its earnings per share (EPS) grow by 69% per year. Its revenue is up 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has 3U Holding AG Been A Good Investment?

We think that the total shareholder return of 178%, over three years, would leave most 3U Holding AG shareholders smiling. 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.

To Conclude...

As we noted earlier, 3U Holding pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Michael's performance creates value for the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 4 warning signs for 3U Holding that you should be aware of before investing.

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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