A Look At Münchener Rückversicherungs-Gesellschaft in München's (ETR:MUV2) CEO Remuneration

Joachim Wenning has been the CEO of Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (ETR:MUV2) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Münchener Rückversicherungs-Gesellschaft in München pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Münchener Rückversicherungs-Gesellschaft in München

Comparing Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München's CEO Compensation With the industry

Our data indicates that Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München has a market capitalization of €34b, and total annual CEO compensation was reported as €5.6m for the year to December 2019. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €2.2m.

In comparison with other companies in the industry with market capitalizations over €6.5b , the reported median total CEO compensation was €4.2m. Accordingly, our analysis reveals that Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München pays Joachim Wenning north of the industry median. Furthermore, Joachim Wenning directly owns €2.8m worth of shares in the company.

On an industry level, around 40% of total compensation represents salary and 60% is other remuneration. Our data reveals that Münchener Rückversicherungs-Gesellschaft in München allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München's Growth

Over the past three years, Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München has seen its earnings per share (EPS) grow by 59% per year. In the last year, its revenue is up 4.1%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München Been A Good Investment?

Most shareholders would probably be pleased with Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München for providing a total return of 46% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Joachim's performance.

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 2 warning signs for Münchener Rückversicherungs-Gesellschaft in München that investors should look into moving forward.

Switching gears from Münchener Rückversicherungs-Gesellschaft in München, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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