Stefan Schulte has been the CEO of Fraport AG (ETR:FRA) since 2009. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Stefan Schulte’s Compensation Compare With Similar Sized Companies?
According to our data, Fraport AG has a market capitalization of €6.3b, and pays its CEO total annual compensation worth €2m. That’s a fairly small increase of 2.8% on year before. When we examined a selection of companies with market caps ranging from €3.5b to €10.6b, we found the median CEO compensation was €2m.
So Stefan Schulte 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.
You can see a visual representation of the CEO compensation at Fraport, below.
Is Fraport AG Growing?
On average over the last three years, Fraport AG has grown earnings per share (EPS) by 14% each year. Its revenue is up 14% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Fraport AG Been A Good Investment?
Fraport AG has served shareholders reasonably well, with a total return of 27% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Stefan Schulte is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Fraport AG insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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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 email@example.com.