The CEO of Medion AG (ETR:MDN) is Gerd Brachmann, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Medion AG's CEO Compensation With the industry
Our data indicates that Medion AG has a market capitalization of €693m, and total annual CEO compensation was reported as €819k for the year to March 2020. We note that's a decrease of 37% compared to last year. We note that the salary portion, which stands at €616.5k constitutes the majority of total compensation received by the CEO.
On examining similar-sized companies in the industry with market capitalizations between €330m and €1.3b, we discovered that the median CEO total compensation of that group was €640k. So it looks like Medion compensates Gerd Brachmann in line with the median for the industry.
Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 4.8% of the pie. In Medion's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Medion AG's Growth
Over the past three years, Medion AG has seen its earnings per share (EPS) grow by 7.0% per year. It achieved revenue growth of 13% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Medion AG Been A Good Investment?
Medion AG has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
As we noted earlier, Medion pays its CEO in line with similar-sized companies belonging to the same industry. But the company has failed to produce substantial growth in either EPS or total shareholder return. Considering the steady performance, it's tough to call out CEO compensation as too high, but shareholders might want to see more robust growth metrics before agreeing to a future raise.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Medion (free visualization of insider trades).
Switching gears from Medion, 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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