Stock Analysis

Does ATOSS Software AG's (ETR:AOF) CEO Salary Reflect Performance?

XTRA:AOF
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In 1999 Andreas F. Obereder was appointed CEO of ATOSS Software AG (ETR:AOF). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for ATOSS Software

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How Does Andreas F. Obereder's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that ATOSS Software AG has a market cap of €523m, and reported total annual CEO compensation of €1.0m for the year to December 2019. That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €540k. When we examined a selection of companies with market caps ranging from €181m to €725m, we found the median CEO total compensation was €1.0m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of ATOSS Software. On a sector level, around 50% of total compensation represents salary and 50% is other remuneration. So it seems like there isn't a significant difference between ATOSS Software and the broader market, in terms of salary allocation in the overall compensation package.

So Andreas F. Obereder receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see, below, how CEO compensation at ATOSS Software has changed over time.

XTRA:AOF CEO Compensation April 1st 2020
XTRA:AOF CEO Compensation April 1st 2020

Is ATOSS Software AG Growing?

On average over the last three years, ATOSS Software AG has seen earnings per share (EPS) move in a favourable direction by 14% each year (using a line of best fit). It achieved revenue growth of 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has ATOSS Software AG Been A Good Investment?

Most shareholders would probably be pleased with ATOSS Software AG for providing a total return of 100% 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.

In Summary...

Remuneration for Andreas F. Obereder is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Moving away from CEO compensation for the moment, we've identified 1 warning sign for ATOSS Software that you should be aware of before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

About XTRA:AOF

ATOSS Software

Offers technology and consulting solutions for professional workforce management and demand optimized personnel deployment in Germany, Austria, Switzerland, and internationally.

Outstanding track record with flawless balance sheet and pays a dividend.

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