Does Eckert & Ziegler Strahlen- und Medizintechnik AG's (ETR:EUZ) CEO Pay Matter?
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The CEO of Eckert & Ziegler Strahlen- und Medizintechnik AG (ETR:EUZ) is Andreas Eckert. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
See our latest analysis for Eckert & Ziegler Strahlen- und Medizintechnik
How Does Andreas Eckert's Compensation Compare With Similar Sized Companies?
According to our data, Eckert & Ziegler Strahlen- und Medizintechnik AG has a market capitalization of €391m, and pays its CEO total annual compensation worth €675k. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at €300k. We examined companies with market caps from €178m to €713m, and discovered that the median CEO total compensation of that group was €703k.
So Andreas Eckert is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Eckert & Ziegler Strahlen- und Medizintechnik, below.
Is Eckert & Ziegler Strahlen- und Medizintechnik AG Growing?
Over the last three years Eckert & Ziegler Strahlen- und Medizintechnik AG has grown its earnings per share (EPS) by an average of 9.0% per year (using a line of best fit). Its revenue is up 24% over last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.
Has Eckert & Ziegler Strahlen- und Medizintechnik AG Been A Good Investment?
Boasting a total shareholder return of 329% over three years, Eckert & Ziegler Strahlen- und Medizintechnik AG has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Andreas Eckert is paid around the same as most CEOs of similar size companies.
While the growth could be better, the shareholder returns are clearly good. So all things considered I'd venture that the CEO pay is appropriate. So you may want to check if insiders are buying Eckert & Ziegler Strahlen- und Medizintechnik shares with their own money (free access).
Important note: Eckert & Ziegler Strahlen- und Medizintechnik 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.
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.
