Michael Kenfenheuer has been the CEO of adesso AG (FRA:ADN1) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Michael Kenfenheuer’s Compensation Compare With Similar Sized Companies?
Our data indicates that adesso AG is worth €299m, and total annual CEO compensation is €1.0m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at €240k. When we examined a selection of companies with market caps ranging from €175m to €701m, we found the median CEO compensation was €884k.
So Michael Kenfenheuer is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at adesso has changed from year to year.
Is adesso AG Growing?
Over the last three years adesso AG has grown its earnings per share (EPS) by an average of 33% per year. Its revenue is up 20% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has adesso AG Been A Good Investment?
Most shareholders would probably be pleased with adesso AG for providing a total return of 118% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
Remuneration for Michael Kenfenheuer is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling adesso shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings 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 email@example.com.