Is Bertrandt Aktiengesellschaft’s (FRA:BDT) CEO Salary Justified?
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Dietmar Bichler has been the CEO of Bertrandt Aktiengesellschaft (FRA:BDT) since 2001. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Bertrandt
How Does Dietmar Bichler’s Compensation Compare With Similar Sized Companies?
Our data indicates that Bertrandt Aktiengesellschaft is worth €754m, and total annual CEO compensation is €2.4m. (This is based on the year to 2018). That’s a fairly small increase of 4.8% on year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €669k. We examined companies with market caps from €355m to €1.4b, and discovered that the median CEO compensation of that group was €1.2m.
Thus we can conclude that Dietmar Bichler receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bertrandt Aktiengesellschaft. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Bertrandt has changed from year to year.
Is Bertrandt Aktiengesellschaft Growing?
On average over the last three years, Bertrandt Aktiengesellschaft has shrunk earnings per share by 14% each year (measured with a line of best fit). In the last year, its revenue is up 2.7%.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bertrandt Aktiengesellschaft Been A Good Investment?
With a three year total loss of 21%, Bertrandt Aktiengesellschaft would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We examined the amount Bertrandt Aktiengesellschaft pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Bertrandt shares (free trial).
If you want to buy a stock that is better than Bertrandt, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
