Markus Ehrle became the CEO of APG|SGA SA (VTX:APGN) in 2014. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Markus Ehrle's Compensation Compare With Similar Sized Companies?
According to our data, APG|SGA SA has a market capitalization of CHF773m, and pays its CEO total annual compensation worth CHF1.0m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CHF435k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CHF393m to CHF1.6b. The median total CEO compensation was CHF1.0m.
So Markus Ehrle 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.
The graphic below shows how CEO compensation at APG|SGA has changed from year to year.
Is APG|SGA SA Growing?
APG|SGA SA has reduced its earnings per share by an average of 12% a year, over the last three years (measured with a line of best fit). Revenue was pretty flat on last year.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has APG|SGA SA Been A Good Investment?
Given the total loss of 26% over three years, many shareholders in APG|SGA SA are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Markus Ehrle is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at APG|SGA.
Important note: APG|SGA 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.
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