In 2012 Frank Mastiaux was appointed CEO of EnBW Energie Baden-Württemberg AG (FRA:EBK). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Frank Mastiaux’s Compensation Compare With Similar Sized Companies?
Our data indicates that EnBW Energie Baden-Württemberg AG is worth €8.2b, and total annual CEO compensation is €3.3m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €990k. We examined companies with market caps from €3.6b to €11b, and discovered that the median CEO total compensation of that group was €3.1m.
So Frank Mastiaux is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at EnBW Energie Baden-Württemberg has changed over time.
Is EnBW Energie Baden-Württemberg AG Growing?
Over the last three years EnBW Energie Baden-Württemberg AG has grown its earnings per share (EPS) by an average of 78% per year (using a line of best fit). In the last year, its revenue changed by just 0.6%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Has EnBW Energie Baden-Württemberg AG Been A Good Investment?
I think that the total shareholder return of 54%, over three years, would leave most EnBW Energie Baden-Württemberg AG shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Frank Mastiaux 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! So you may want to check if insiders are buying EnBW Energie Baden-Württemberg shares with their own money (free access).
If you want to buy a stock that is better than EnBW Energie Baden-Württemberg, this free list of high return, low debt companies is a great place to look.
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