Alexander Schmidt became the CEO of Alexanderwerk Aktiengesellschaft (FRA:ALX) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Alexander Schmidt's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Alexanderwerk Aktiengesellschaft has a market cap of €32m, and reported total annual CEO compensation of €380k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €198k. We took a group of companies with market capitalizations below €178m, and calculated the median CEO total compensation to be €385k.
That means Alexander 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.
You can see, below, how CEO compensation at Alexanderwerk has changed over time.
Is Alexanderwerk Aktiengesellschaft Growing?
Over the last three years Alexanderwerk Aktiengesellschaft has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). It achieved revenue growth of 9.2% over the 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Alexanderwerk Aktiengesellschaft Been A Good Investment?
Boasting a total shareholder return of 340% over three years, Alexanderwerk Aktiengesellschaft has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Alexander Schmidt is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Alexanderwerk insiders are buying or selling shares.
If you want to buy a stock that is better than Alexanderwerk, this free list of high return, low debt companies is a great place to look.
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