It's Unlikely That ecotel communication ag's (ETR:E4C) CEO Will See A Huge Pay Rise This Year

Performance at ecotel communication ag (ETR:E4C) has been reasonably good and CEO Peter Zils has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 08 July 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for ecotel communication ag

How Does Total Compensation For Peter Zils Compare With Other Companies In The Industry?

According to our data, ecotel communication ag has a market capitalization of €67m, and paid its CEO total annual compensation worth €539k over the year to December 2020. That's a notable increase of 14% on last year. We note that the salary portion, which stands at €350.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below €169m, we found that the median total CEO compensation was €323k. Accordingly, our analysis reveals that ecotel communication ag pays Peter Zils north of the industry median. Furthermore, Peter Zils directly owns €20m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	€350k	€350k	65%
Other	€189k	€124k	35%
Total Compensation	€539k	€474k	100%

On an industry level, around 35% of total compensation represents salary and 65% is other remuneration. ecotel communication ag is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at ecotel communication ag's Growth Numbers

ecotel communication ag has seen its earnings per share (EPS) increase by 71% a year over the past three years. It achieved revenue growth of 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has ecotel communication ag Been A Good Investment?

Boasting a total shareholder return of 139% over three years, ecotel communication ag has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for ecotel communication ag (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from ecotel communication ag, 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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