Is RIWI Corp’s (FRA:5RW) CEO Paid Enough To Stay Motivated?

In 2011 Neil Seeman was appointed CEO of RIWI Corp (FRA:5RW). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for RIWI

How Does Neil Seeman’s Compensation Compare With Similar Sized Companies?

According to our data, RIWI Corp has a market capitalization of €11m, and pays its CEO total annual compensation worth US$130k. That’s less than last year. We examined a group of similar sized companies, with market capitalizations of below CA$260m. The median CEO compensation in that group is CA$395k.

Most shareholders would consider it a positive that Neil Seeman takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at RIWI, below.

DB:5RW CEO Compensation October 12th 18
DB:5RW CEO Compensation October 12th 18

Is RIWI Corp Growing?

Over the last three years RIWI Corp has grown its earnings per share (EPS) by an average of 7.9% per year. Its revenue is up 97% over last year.

I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list.

Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has RIWI Corp Been A Good Investment?

With a three year total loss of 68%, RIWI Corp would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

RIWI Corp is currently paying its CEO below what is normal for companies of its size.

It’s well worth noting that while Neil Seeman is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Whatever your view on compensation, you might want to check if insiders are buying or selling RIWI Corp shares (free trial).

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.