How Is VITA 34's (ETR:V3V) CEO Compensated?

This article will reflect on the compensation paid to Wolfgang Knirsch who has served as CEO of VITA 34 AG (ETR:V3V) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for VITA 34.

View our latest analysis for VITA 34

Comparing VITA 34 AG's CEO Compensation With the industry

According to our data, VITA 34 AG has a market capitalization of €51m, and paid its CEO total annual compensation worth €318k over the year to December 2019. Notably, that's a decrease of 18% over the year before. In particular, the salary of €250.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under €163m, the reported median total CEO compensation was €216k. This suggests that Wolfgang Knirsch is paid more than the median for the industry.

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. According to our research, VITA 34 has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

VITA 34 AG's Growth

VITA 34 AG's earnings per share (EPS) grew 63% per year over the last three years. In the last year, its revenue changed by just 0.9%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 VITA 34 AG Been A Good Investment?

VITA 34 AG has served shareholders reasonably well, with a total return of 24% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, VITA 34 pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed us with its EPS growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize CEO compensation, though we'd recommend further research on management.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for VITA 34 that you should be aware of before investing.

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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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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