Yury Semenov has been the CEO of Petro Welt Technologies AG (ETR:O2C) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Petro Welt Technologies pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Petro Welt Technologies
Comparing Petro Welt Technologies AG's CEO Compensation With the industry
Our data indicates that Petro Welt Technologies AG has a market capitalization of €101m, and total annual CEO compensation was reported as €1.6m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of €885.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below €170m, we found that the median total CEO compensation was €385k. Accordingly, our analysis reveals that Petro Welt Technologies AG pays Yury Semenov north of the industry median.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €885k | €1.1m | 56% |
| Other | €690k | €470k | 44% |
| Total Compensation | €1.6m | €1.6m | 100% |
On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. Petro Welt Technologies is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Petro Welt Technologies AG's Growth
Petro Welt Technologies AG has reduced its earnings per share by 28% a year over the last three years. Its revenue is up 20% over the last year.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Petro Welt Technologies AG Been A Good Investment?
Since shareholders would have lost about 67% over three years, some Petro Welt Technologies AG investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we noted earlier, Petro Welt Technologies pays its CEO higher than the norm for similar-sized companies belonging to the same industry. It concerns us that EPS growth for the company is negative, while share price gains did not materialize over the last three years. In contrast, revenue growth for the company has been showing a positive trend. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Petro Welt Technologies you should be aware of, and 1 of them is a bit concerning.
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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