Is All for One Steeb AG’s (ETR:A1OS) CEO Pay Fair?

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Lars Landwehrkamp has been the CEO of All for One Steeb AG (ETR:A1OS) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for All for One Steeb

How Does Lars Landwehrkamp’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that All for One Steeb AG has a market cap of €269m, and is paying total annual CEO compensation of €1.2m. (This number is for the twelve months until 2018). That’s just a smallish increase of 5.2% on last year. We think total compensation is more important but we note that the CEO salary is lower, at €336k. When we examined a selection of companies with market caps ranging from €177m to €710m, we found the median CEO compensation was €755k.

Thus we can conclude that Lars Landwehrkamp receives more in total compensation than the median of a group of companies in the same market, and of similar size to All for One Steeb AG. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at All for One Steeb has changed over time.

XTRA:A1OS CEO Compensation February 15th 19
XTRA:A1OS CEO Compensation February 15th 19

Is All for One Steeb AG Growing?

All for One Steeb AG has increased its earnings per share (EPS) by an average of 2.7% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.9%.

I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.

Has All for One Steeb AG Been A Good Investment?

All for One Steeb AG has not done too badly by shareholders, with a total return of 0.6%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

We compared total CEO remuneration at All for One Steeb AG with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. Whatever your view on compensation, you might want to check if insiders are buying or selling All for One Steeb shares (free trial).

If you want to buy a stock that is better than All for One Steeb, this free list of high return, low debt companies is a great place to look.

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.