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Ronald Slabke has been the CEO of Hypoport AG (FRA:HYQ) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ronald Slabke’s Compensation Compare With Similar Sized Companies?
According to our data, Hypoport AG has a market capitalization of €1.2b, and pays its CEO total annual compensation worth €544k. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at €425k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €890m to €2.8b. The median total CEO compensation was €1.5m.
Most shareholders would consider it a positive that Ronald Slabke takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Hypoport, below.
Is Hypoport AG Growing?
Over the last three years Hypoport AG has grown its earnings per share (EPS) by an average of 8.4% per year (using a line of best fit). Its revenue is up 36% over last year.
It’s great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. I wouldn’t say this is necessarily top notch growth, but it is certainly promising. Shareholders might be interested in this free visualization of analyst forecasts.
Has Hypoport AG Been A Good Investment?
I think that the total shareholder return of 149%, over three years, would leave most Hypoport 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.
It appears that Hypoport AG remunerates its CEO below most similar sized companies.
It’s well worth noting that while Ronald Slabke is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. Shareholders may want to check for free if Hypoport insiders are buying or selling shares.
Important note: Hypoport may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.