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Brian Protiva became the CEO of ADVA Optical Networking SE (ETR:ADV) in 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Brian Protiva's Compensation Compare With Similar Sized Companies?
According to our data, ADVA Optical Networking SE has a market capitalization of €251m, and paid its CEO total annual compensation worth €468k over the year to December 2019. That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €253k. When we examined a selection of companies with market caps ranging from €92m to €369m, we found the median CEO total compensation was €690k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where ADVA Optical Networking stands. On a sector level, around 74% of total compensation represents salary and 26% is other remuneration. So it seems like there isn't a significant difference between ADVA Optical Networking 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 Brian Protiva is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see, below, how CEO compensation at ADVA Optical Networking has changed over time.
Is ADVA Optical Networking SE Growing?
Over the last three years ADVA Optical Networking SE has shrunk its earnings per share by an average of 38% per year (measured with a line of best fit). Its revenue is up 11% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has ADVA Optical Networking SE Been A Good Investment?
Since shareholders would have lost about 52% over three years, some ADVA Optical Networking SE shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
It looks like ADVA Optical Networking SE pays its CEO less than similar sized companies.
Brian Protiva is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. On another note, we've spotted 3 warning signs for ADVA Optical Networking that investors should look into moving forward.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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