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Does DEUTZ Aktiengesellschaft's (ETR:DEZ) CEO Pay Compare Well With Peers?

Simply Wall St

Frank Hiller is the CEO of DEUTZ Aktiengesellschaft (ETR:DEZ). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for DEUTZ

How Does Frank Hiller's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that DEUTZ Aktiengesellschaft has a market cap of €592m, and reported total annual CEO compensation of €1.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €750k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from €363m to €1.5b, we found the median CEO total compensation was €1.2m.

As you can see, Frank Hiller is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean DEUTZ Aktiengesellschaft is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at DEUTZ has changed from year to year.

XTRA:DEZ CEO Compensation, January 26th 2020

Is DEUTZ Aktiengesellschaft Growing?

Over the last three years DEUTZ Aktiengesellschaft has grown its earnings per share (EPS) by an average of 44% per year (using a line of best fit). In the last year, its revenue is up 11%.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has DEUTZ Aktiengesellschaft Been A Good Investment?

Since shareholders would have lost about 15% over three years, some DEUTZ Aktiengesellschaft shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared the total CEO remuneration paid by DEUTZ Aktiengesellschaft, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling DEUTZ shares (free trial).

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

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.

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. Thank you for reading.