How Much Does Mainova's (FRA:MNV6) CEO Make?

Constantin Alsheimer is the CEO of Mainova AG (FRA:MNV6), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Mainova

Comparing Mainova AG's CEO Compensation With the industry

According to our data, Mainova AG has a market capitalization of €2.9b, and paid its CEO total annual compensation worth €881k over the year to December 2019. That's just a smallish increase of 3.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €376k.

In comparison with other companies in the industry with market capitalizations ranging from €1.6b to €5.2b, the reported median CEO total compensation was €1.3m. In other words, Mainova pays its CEO lower than the industry median.

Speaking on an industry level, nearly 34% of total compensation represents salary, while the remainder of 66% is other remuneration. Mainova pays out 43% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Mainova AG's Growth Numbers

Over the last three years, Mainova AG has shrunk its earnings per share by 31% per year. Its revenue is up 11% over the last year.

Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Mainova AG Been A Good Investment?

Most shareholders would probably be pleased with Mainova AG for providing a total return of 46% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we noted earlier, Mainova pays its CEO lower than the norm for similar-sized companies belonging to the same industry. And although the company is suffering from declining EPS growth over the past three years, shareholder returns remain strong. Although we'd like to see positive EPS growth, we'd argue the remuneration is modest, based on our observations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Mainova you should be aware of, and 2 of them are a bit unpleasant.

Switching gears from Mainova, 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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