Steven De Proost is the CEO of 7C Solarparken AG (ETR:HRPK). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steven De Proost's Compensation Compare With Similar Sized Companies?
Our data indicates that 7C Solarparken AG is worth €191m, and total annual CEO compensation was reported as €226k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €160k. We examined companies with market caps from €92m to €369m, and discovered that the median CEO total compensation of that group was €690k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. So it seems like there isn't a significant difference between 7C Solarparken and the broader market, in terms of salary allocation in the overall compensation package.
At first glance this seems like a real positive for shareholders, since Steven De Proost is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance. The graphic below shows how CEO compensation at 7C Solarparken has changed from year to year.
Is 7C Solarparken AG Growing?
7C Solarparken AG has reduced its earnings per share by an average of 5.9% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 21%.
Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has 7C Solarparken AG Been A Good Investment?
Boasting a total shareholder return of 50% over three years, 7C Solarparken AG has done well by shareholders. 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.
7C Solarparken AG is currently paying its CEO below what is normal for companies of its size.
Steven De Proost receives relatively low remuneration compared to similar sized companies. And while the company isn't growing earnings per share, total returns have been pleasing. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. CEO compensation is an important area to keep your eyes on, but we've also identified 4 warning signs for 7C Solarparken (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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