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Does ADVA Optical Networking SE's (ETR:ADV) CEO Pay Compare Well With Peers?

Simply Wall St

Brian Protiva has been the CEO of ADVA Optical Networking SE (ETR:ADV) since 2001. 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.

Check out our latest analysis for ADVA Optical Networking

How Does Brian Protiva's Compensation Compare With Similar Sized Companies?

According to our data, ADVA Optical Networking SE has a market capitalization of €291m, and pays its CEO total annual compensation worth €642k. (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 €253k. We examined companies with market caps from €182m to €727m, and discovered that the median CEO total compensation of that group was €745k.

That means Brian Protiva receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at ADVA Optical Networking, below.

XTRA:ADV CEO Compensation, August 31st 2019

Is ADVA Optical Networking SE Growing?

ADVA Optical Networking SE has reduced its earnings per share by an average of 47% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 9.8% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has ADVA Optical Networking SE Been A Good Investment?

Since shareholders would have lost about 26% over three years, some ADVA Optical Networking SE shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Brian Protiva 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. Suffice it to say, we don't think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ADVA Optical Networking.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.