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Andreas Arndt became the CEO of Deutsche Pfandbriefbank AG (ETR:PBB) in 2014. 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.
How Does Andreas Arndt's Compensation Compare With Similar Sized Companies?
Our data indicates that Deutsche Pfandbriefbank AG is worth €1.4b, and total annual CEO compensation is €1.4m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €500k. When we examined a selection of companies with market caps ranging from €891m to €2.8b, we found the median CEO total compensation was €1.5m.
That means Andreas Arndt 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.
You can see a visual representation of the CEO compensation at Deutsche Pfandbriefbank, below.
Is Deutsche Pfandbriefbank AG Growing?
On average over the last three years, Deutsche Pfandbriefbank AG has shrunk earnings per share by 11% each year (measured with a line of best fit). It achieved revenue growth of 5.5% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Deutsche Pfandbriefbank AG Been A Good Investment?
Boasting a total shareholder return of 51% over three years, Deutsche Pfandbriefbank 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.
Andreas Arndt is paid around what is normal the leaders of comparable size companies.
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Deutsche Pfandbriefbank (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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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. Thank you for reading.