This Is Why Instone Real Estate Group AG's (ETR:INS) CEO Compensation Looks Appropriate

CEO Kruno Crepulja has done a decent job of delivering relatively good performance at Instone Real Estate Group AG (ETR:INS) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 09 June 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Instone Real Estate Group

Comparing Instone Real Estate Group AG's CEO Compensation With the industry

At the time of writing, our data shows that Instone Real Estate Group AG has a market capitalization of €1.2b, and reported total annual CEO compensation of €1.1m for the year to December 2020. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at €450k.

On examining similar-sized companies in the industry with market capitalizations between €816m and €2.6b, we discovered that the median CEO total compensation of that group was €1.1m. From this we gather that Kruno Crepulja is paid around the median for CEOs in the industry.

Component	2020	2019	Proportion (2020)
Salary	€450k	€450k	41%
Other	€643k	€637k	59%
Total Compensation	€1.1m	€1.1m	100%

Speaking on an industry level, nearly 41% of total compensation represents salary, while the remainder of 59% is other remuneration. There isn't a significant difference between Instone Real Estate Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Instone Real Estate Group AG's Growth

Instone Real Estate Group AG has seen its earnings per share (EPS) increase by 52% a year over the past three years. It saw its revenue drop 6.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Instone Real Estate Group AG Been A Good Investment?

Instone Real Estate Group AG has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Instone Real Estate Group that you should be aware of before investing.

Switching gears from Instone Real Estate Group, 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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