The CEO of DocCheck AG (ETR:AJ91) is Frank Antwerpes, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for DocCheck
Comparing DocCheck AG's CEO Compensation With the industry
At the time of writing, our data shows that DocCheck AG has a market capitalization of €114m, and reported total annual CEO compensation of €245k for the year to December 2019. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at €184.7k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below €165m, reported a median total CEO compensation of €221k. From this we gather that Frank Antwerpes is paid around the median for CEOs in the industry. Furthermore, Frank Antwerpes directly owns €62m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €185k | €184k | 75% |
| Other | €60k | €60k | 25% |
| Total Compensation | €245k | €244k | 100% |
On an industry level, roughly 75% of total compensation represents salary and 25% is other remuneration. DocCheck is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at DocCheck AG's Growth Numbers
Over the past three years, DocCheck AG has seen its earnings per share (EPS) grow by 17% per year. It achieved revenue growth of 27% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has DocCheck AG Been A Good Investment?
We think that the total shareholder return of 148%, over three years, would leave most DocCheck 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.
In Summary...
As previously discussed, Frank is compensated close to the median for companies of its size, and which belong to the same industry. Investors would surely be happy to see that returns have been great, and that EPS is up. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for DocCheck that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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. 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. Simply Wall St has no position in any stocks mentioned.
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About XTRA:AJ91
DocCheck
Offers marketing and e-commerce services for the healthcare sector in Europe.
Flawless balance sheet, good value and pays a dividend.
