The CEO of Travel24.com AG (FRA:TVD6) is Armin Schauer. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Armin Schauer's Compensation Compare With Similar Sized Companies?
According to our data, Travel24.com AG has a market capitalization of €4.9m, and paid its CEO total annual compensation worth €281k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €260k. We examined a group of similar sized companies, with market capitalizations of below €181m. The median CEO total compensation in that group is €385k.
That means Armin Schauer receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Travel24.com has changed from year to year.
Is Travel24.com AG Growing?
On average over the last three years, Travel24.com AG has grown earnings per share (EPS) by 49% each year (using a line of best fit). It saw its revenue drop 20% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Travel24.com AG Been A Good Investment?
Since shareholders would have lost about 16% over three years, some Travel24.com AG shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Armin Schauer is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Travel24.com (free visualization of insider trades).
Important note: Travel24.com 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.