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How Should Investors React To 3U Holding AG's (ETR:UUU) CEO Pay?

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Simply Wall St
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Michael Schmidt became the CEO of 3U Holding AG (ETR:UUU) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for 3U Holding

How Does Michael Schmidt's Compensation Compare With Similar Sized Companies?

Our data indicates that 3U Holding AG is worth €58m, and total annual CEO compensation was reported as €408k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €300k. We examined a group of similar sized companies, with market capitalizations of below €180m. The median CEO total compensation in that group is €387k.

That means Michael Schmidt 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.

The graphic below shows how CEO compensation at 3U Holding has changed from year to year.

XTRA:UUU CEO Compensation, December 24th 2019
XTRA:UUU CEO Compensation, December 24th 2019

Is 3U Holding AG Growing?

Over the last three years 3U Holding AG has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). Its revenue is up 9.7% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has 3U Holding AG Been A Good Investment?

I think that the total shareholder return of 178%, over three years, would leave most 3U Holding AG shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Michael Schmidt is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if 3U Holding insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.