In 2006 Heinz Schimmelbusch was appointed CEO of AMG Advanced Metallurgical Group N.V. (AMS:AMG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
How Does Heinz Schimmelbusch's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that AMG Advanced Metallurgical Group N.V. has a market cap of €597m, and reported total annual CEO compensation of US$6.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$1.2m.
As you can see, Heinz Schimmelbusch is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AMG Advanced Metallurgical Group N.V. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at AMG Advanced Metallurgical Group has changed over time.
Is AMG Advanced Metallurgical Group N.V. Growing?
Over the last three years AMG Advanced Metallurgical Group N.V. has grown its earnings per share (EPS) by an average of 5.2% per year (using a line of best fit). It achieved revenue growth of 1.4% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.
Has AMG Advanced Metallurgical Group N.V. Been A Good Investment?
I think that the total shareholder return of 47%, over three years, would leave most AMG Advanced Metallurgical Group N.V. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at AMG Advanced Metallurgical Group N.V. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AMG Advanced Metallurgical Group.
Important note: AMG Advanced Metallurgical Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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