In 2011 Neil Seeman was appointed CEO of RIWI Corp. (FRA:5RW). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Neil Seeman's Compensation Compare With Similar Sized Companies?
Our data indicates that RIWI Corp. is worth €23m, and total annual CEO compensation is US$143k. (This number is for the twelve months until December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$142k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$251k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at RIWI has changed over time.
Is RIWI Corp. Growing?
RIWI Corp. has increased its earnings per share (EPS) by an average of 89% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 70%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has RIWI Corp. Been A Good Investment?
With a total shareholder return of 16% over three years, RIWI Corp. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that RIWI Corp. remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Neil Seeman is overcompensated.
It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Shareholders may want to check for free if RIWI insiders are buying or selling shares.
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 email@example.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. Thank you for reading.