Markus Ehrle has been the CEO of APG|SGA SA (VTX:APGN) since 2014. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Markus Ehrle's Compensation Compare With Similar Sized Companies?
Our data indicates that APG|SGA SA is worth CHF848m, and total annual CEO compensation was reported as CHF1.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CHF435k. We looked at a group of companies with market capitalizations from CHF389m to CHF1.6b, and the median CEO total compensation was CHF983k.
So Markus Ehrle receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at APG|SGA has changed from year to year.
Is APG|SGA SA Growing?
On average over the last three years, APG|SGA SA has shrunk earnings per share by 17% each year (measured with a line of best fit). In the last year, its revenue is up 3.2%.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has APG|SGA SA Been A Good Investment?
Given the total loss of 25% 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.
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling APG|SGA shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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