Why Washtec AG's (FRA:WSU) CEO Pay Matters To You

In 2015 Volker Zimmermann was appointed CEO of Washtec AG (FRA:WSU). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Washtec

How Does Volker Zimmermann's Compensation Compare With Similar Sized Companies?

Our data indicates that Washtec AG is worth €970m, and total annual CEO compensation is €1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €348m to €1.4b. The median total CEO compensation was €704k.

Thus we can conclude that Volker Zimmermann receives more in total compensation than the median of a group of companies in the same market, and of similar size to Washtec AG. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Washtec, below.

Is Washtec AG Growing?

Over the last three years Washtec AG has grown its earnings per share (EPS) by an average of 20% per year. Revenue was pretty flat on last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Washtec AG Been A Good Investment?

I think that the total shareholder return of 215%, over three years, would leave most Washtec AG shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at Washtec AG with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Washtec AG (free visualization of insider trades).

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.