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Does 3U Holding AG's (ETR:UUU) CEO Pay Matter?

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Simply Wall St
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In 2011 Michael Schmidt was appointed CEO of 3U Holding AG (ETR:UUU). 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. The aim of all this is to consider the appropriateness of CEO pay levels.

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Check out our latest analysis for 3U Holding

How Does Michael Schmidt's Compensation Compare With Similar Sized Companies?

According to our data, 3U Holding AG has a market capitalization of €36m, and pays its CEO total annual compensation worth €409k. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at €300k. We examined a group of similar sized companies, with market capitalizations of below €179m. The median CEO total compensation in that group is €213k.

It would therefore appear that 3U Holding AG pays Michael Schmidt more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at 3U Holding has changed over time.

XTRA:UUU CEO Compensation, May 16th 2019
XTRA:UUU CEO Compensation, May 16th 2019

Is 3U Holding AG Growing?

3U Holding AG has increased its earnings per share (EPS) by an average of 83% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.4%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has 3U Holding AG Been A Good Investment?

I think that the total shareholder return of 68%, over three years, would leave most 3U Holding AG shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount 3U Holding AG pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if 3U Holding insiders are buying or selling shares.

If you want to buy a stock that is better than 3U Holding, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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. Thank you for reading.