Our Take On artnet's (ETR:ART) CEO Salary

This article will reflect on the compensation paid to Jacob Pabst who has served as CEO of artnet AG (ETR:ART) since 2012. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for artnet

Comparing artnet AG's CEO Compensation With the industry

According to our data, artnet AG has a market capitalization of €38m, and paid its CEO total annual compensation worth €411k over the year to December 2019. That's a notable increase of 14% on last year. In particular, the salary of €368.5k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below €165m, we found that the median total CEO compensation was €294k. Accordingly, our analysis reveals that artnet AG pays Jacob Pabst north of the industry median.

Speaking on an industry level, nearly 73% of total compensation represents salary, while the remainder of 27% is other remuneration. According to our research, artnet has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

artnet AG's Growth

artnet AG's earnings per share (EPS) grew 4.1% per year over the last three years. Its revenue is up 1.0% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has artnet AG Been A Good Investment?

Most shareholders would probably be pleased with artnet AG for providing a total return of 59% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, artnet pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Importantly though, shareholder returns for the last three years have been excellent. On the other hand, EPS growth — over the same period — is not as impressive. We'd ideally want to see higher EPS growth, but CEO compensation seems to be within reason, given high shareholder returns.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 4 warning signs for artnet that investors should be aware of in a dynamic business environment.

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.

If you’re looking to trade artnet, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.