The CEO of CEWE Stiftung & Co. KGaA (FRA:CWC) is Christian Friege. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Christian Friege’s Compensation Compare With Similar Sized Companies?
According to our data, CEWE Stiftung & Co. KGaA has a market capitalization of €588m, and pays its CEO total annual compensation worth €861k. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €360k. When we examined a selection of companies with market caps ranging from €357m to €1.4b, we found the median CEO total compensation was €1.0m.
So Christian Friege is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at CEWE Stiftung KGaA, below.
Is CEWE Stiftung & Co. KGaA Growing?
Over the last three years CEWE Stiftung & Co. KGaA has grown its earnings per share (EPS) by an average of 10.0% per year (using a line of best fit). Its revenue is up 8.6% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
Has CEWE Stiftung & Co. KGaA Been A Good Investment?
With a total shareholder return of 21% over three years, CEWE Stiftung & Co. KGaA shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Christian Friege is paid around the same as most CEOs of similar size companies.
The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. While the CEO may not be underpaid, we don’t think the pay is too generous either. Whatever your view on compensation, you might want to check if insiders are buying or selling CEWE Stiftung KGaA shares (free trial).
If you want to buy a stock that is better than CEWE Stiftung KGaA, this free list of high return, low debt companies is a great place to look.
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