It's Unlikely That CEWE Stiftung & Co. KGaA's (ETR:CWC) CEO Will See A Huge Pay Rise This Year

By
Simply Wall St
Published
June 01, 2021
XTRA:CWC
Source: Shutterstock

Under the guidance of CEO Christian Friege, CEWE Stiftung & Co. KGaA (ETR:CWC) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 09 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for CEWE Stiftung KGaA

How Does Total Compensation For Christian Friege Compare With Other Companies In The Industry?

According to our data, CEWE Stiftung & Co. KGaA has a market capitalization of €958m, and paid its CEO total annual compensation worth €1.1m over the year to December 2020. We note that's an increase of 16% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €420k.

In comparison with other companies in the industry with market capitalizations ranging from €327m to €1.3b, the reported median CEO total compensation was €558k. Accordingly, our analysis reveals that CEWE Stiftung & Co. KGaA pays Christian Friege north of the industry median.

Component20202019Proportion (2020)
Salary €420k €360k 37%
Other €728k €629k 63%
Total Compensation€1.1m €989k100%

Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. In CEWE Stiftung KGaA's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
XTRA:CWC CEO Compensation June 2nd 2021

CEWE Stiftung & Co. KGaA's Growth

Over the past three years, CEWE Stiftung & Co. KGaA has seen its earnings per share (EPS) grow by 19% per year. In the last year, its revenue changed by just 0.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has CEWE Stiftung & Co. KGaA Been A Good Investment?

Boasting a total shareholder return of 67% over three years, CEWE Stiftung & Co. KGaA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

Whatever your view on compensation, you might want to check if insiders are buying or selling CEWE Stiftung KGaA shares (free trial).

Important note: CEWE Stiftung KGaA is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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