How Does Grand City Properties' (ETR:GYC) CEO Pay Compare With Company Performance?

Christian Windfuhr has been the CEO of Grand City Properties S.A. (ETR:GYC) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Grand City Properties

How Does Total Compensation For Christian Windfuhr Compare With Other Companies In The Industry?

According to our data, Grand City Properties S.A. has a market capitalization of €3.8b, and paid its CEO total annual compensation worth €538k over 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 €198k.

On examining similar-sized companies in the industry with market capitalizations between €1.7b and €5.4b, we discovered that the median CEO total compensation of that group was €927k. That is to say, Christian Windfuhr is paid under the industry median.

Talking in terms of the industry, salary represented approximately 40% of total compensation out of all the companies we analyzed, while other remuneration made up 60% of the pie. Grand City Properties is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Grand City Properties S.A.'s Growth Numbers

Grand City Properties S.A. has reduced its earnings per share by 4.2% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Grand City Properties S.A. Been A Good Investment?

Boasting a total shareholder return of 36% over three years, Grand City Properties S.A. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As previously discussed, Christian is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. And while EPS growth is negative, shareholder returns have been healthy recently. We would like to see EPS growth, but in our view CEO compensation is modest.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Grand City Properties (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.

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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