Does TUI AG’s (ETR:TUI1) CEO Salary Compare Well With Others?
Fritz Joussen has been the CEO of TUI AG (ETR:TUI1) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for TUI
How Does Fritz Joussen’s Compensation Compare With Similar Sized Companies?
Our data indicates that TUI AG is worth €7.7b, and total annual CEO compensation is €4.8m. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at €1.1m. When we examined a selection of companies with market caps ranging from €3.5b to €11b, we found the median CEO compensation was €2.5m.
Thus we can conclude that Fritz Joussen receives more in total compensation than the median of a group of companies in the same market, and of similar size to TUI AG. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at TUI, below.
Is TUI AG Growing?
Over the last three years TUI AG has grown its earnings per share (EPS) by an average of 42% per year. In the last year, its revenue is up 5.3%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
It could be important to check this free visual depiction of what analysts expect for the future.
Has TUI AG Been A Good Investment?
Since shareholders would have lost about 14% over three years, some TUI AG shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at TUI AG 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.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at TUI.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
