In 2008 Cyrill Schneuwly was appointed CEO of Intershop Holding AG (VTX:ISN). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Cyrill Schneuwly's Compensation Compare With Similar Sized Companies?
Our data indicates that Intershop Holding AG is worth CHF1.0b, and total annual CEO compensation was reported as CHF1.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CHF500k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from CHF399m to CHF1.6b, and discovered that the median CEO total compensation of that group was CHF979k.
It would therefore appear that Intershop Holding AG pays Cyrill Schneuwly more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Intershop Holding, below.
Is Intershop Holding AG Growing?
On average over the last three years, Intershop Holding AG has grown earnings per share (EPS) by 32% each year (using a line of best fit). It achieved revenue growth of 45% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Intershop Holding AG Been A Good Investment?
With a total shareholder return of 25% over three years, Intershop Holding AG shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount Intershop Holding AG pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Intershop Holding insiders are buying or selling shares.
Important note: Intershop Holding 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.
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.
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.