Is EnBW Energie Baden-Württemberg AG’s (FRA:EBK) CEO Paid At A Competitive Rate?

Frank Mastiaux has been the CEO of EnBW Energie Baden-Württemberg AG (FRA:EBK) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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.

View our latest analysis for EnBW Energie Baden-Württemberg

How Does Frank Mastiaux’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that EnBW Energie Baden-Württemberg AG has a market cap of €8.5b, and is paying total annual CEO compensation of €3.3m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €990k. When we examined a selection of companies with market caps ranging from €3.5b to €11b, we found the median CEO compensation was €2.8m.

That means Frank Mastiaux receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at EnBW Energie Baden-Württemberg has changed over time.

DB:EBK CEO Compensation, March 5th 2019
DB:EBK CEO Compensation, March 5th 2019

Is EnBW Energie Baden-Württemberg AG Growing?

On average over the last three years, EnBW Energie Baden-Württemberg AG has grown earnings per share (EPS) by 54% each year (using a line of best fit). In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has EnBW Energie Baden-Württemberg AG Been A Good Investment?

Most shareholders would probably be pleased with EnBW Energie Baden-Württemberg AG for providing a total return of 49% 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 Frank Mastiaux is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. 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).

Important note: EnBW Energie Baden-Württemberg may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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. Thank you for reading.