Stefan Schulte became the CEO of Fraport AG (ETR:FRA) in 2009. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Stefan Schulte's Compensation Compare With Similar Sized Companies?
According to our data, Fraport AG has a market capitalization of €6.8b, and pays its CEO total annual compensation worth €2.7m. (This is based on the year to December 2018). That's a notable increase of 16% on last year. While we always look at total compensation first, we note that the salary component is less, at €415k. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €3.0m.
That means Stefan Schulte receives fairly typical remuneration for the CEO of a company that size. 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 Fraport, below.
Is Fraport AG Growing?
Fraport AG has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). Its revenue is up 18% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Fraport AG Been A Good Investment?
Boasting a total shareholder return of 50% over three years, Fraport 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.
Stefan Schulte is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fraport.
Important note: Fraport 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.
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