What Did USU Software's (ETR:OSP2) CEO Take Home Last Year?

Bernhard Oberschmidt is the CEO of USU Software AG (ETR:OSP2), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether USU Software pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for USU Software

Comparing USU Software AG's CEO Compensation With the industry

At the time of writing, our data shows that USU Software AG has a market capitalization of €246m, and reported total annual CEO compensation of €307k for the year to December 2019. Notably, that's a decrease of 13% over the year before. Notably, the salary which is €184.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from €83m to €331m, the reported median CEO total compensation was €449k. That is to say, Bernhard Oberschmidt is paid under the industry median. Moreover, Bernhard Oberschmidt also holds €3.8m worth of USU Software stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. USU Software is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

USU Software AG's Growth

Over the past three years, USU Software AG has seen its earnings per share (EPS) grow by 40% per year. Its revenue is up 10% 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 revenue growth in a single year. That suggests a healthy and growing business. 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 USU Software AG Been A Good Investment?

USU Software AG has generated a total shareholder return of 16% 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.

To Conclude...

As previously discussed, Bernhard is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But over the last three years, EPS growth has been growing rapidly, which is a great sign for the company. Shareholder returns, in comparison, have not been as impressive. We would wish for better returns (whether dividends or capital gains) but we do admire the solidEPS growth on show here. As a result of these considerations, CEO compensation seems quite appropriate.

So you may want to check if insiders are buying USU Software shares with their own money (free access).

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.

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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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