Ulrich Kubak is the CEO of Klassik Radio AG (ETR:KA8). 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 - 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.
How Does Ulrich Kubak's Compensation Compare With Similar Sized Companies?
According to our data, Klassik Radio AG has a market capitalization of €37m, and paid its CEO total annual compensation worth €268k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €252k. We looked at a group of companies with market capitalizations under €181m, and the median CEO total compensation was €385k.
Most shareholders would consider it a positive that Ulrich Kubak takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Klassik Radio has changed from year to year.
Is Klassik Radio AG Growing?
On average over the last three years, Klassik Radio AG has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is up 25% over last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has Klassik Radio AG Been A Good Investment?
I think that the total shareholder return of 62%, over three years, would leave most Klassik Radio AG shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that Klassik Radio AG remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Ulrich Kubak deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Klassik Radio shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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