U.S. Markets close in 1 hr 48 mins
  • S&P 500

    4,145.75
    -42.68 (-1.02%)
     
  • Dow 30

    34,218.18
    -524.64 (-1.51%)
     
  • Nasdaq

    13,362.09
    -39.77 (-0.30%)
     
  • Russell 2000

    2,208.03
    -4.67 (-0.21%)
     
  • Crude Oil

    65.28
    +0.36 (+0.55%)
     
  • Gold

    1,835.50
    -2.10 (-0.11%)
     
  • Silver

    27.55
    +0.07 (+0.24%)
     
  • EUR/USD

    1.2157
    +0.0022 (+0.1823%)
     
  • 10-Yr Bond

    1.6220
    +0.0200 (+1.25%)
     
  • Vix

    21.49
    +1.83 (+9.31%)
     
  • GBP/USD

    1.4150
    +0.0028 (+0.2009%)
     
  • USD/JPY

    108.6470
    -0.1940 (-0.1782%)
     
  • BTC-USD

    56,414.30
    -669.62 (-1.17%)
     
  • CMC Crypto 200

    1,506.75
    +1,264.07 (+520.88%)
     
  • FTSE 100

    6,947.99
    -175.69 (-2.47%)
     
  • Nikkei 225

    28,608.59
    -909.71 (-3.08%)
     

Should You Worry About alstria office REIT-AG's (ETR:AOX) CEO Pay?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
  • Oops!
    Something went wrong.
    Please try again later.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Olivier Elamine became the CEO of alstria office REIT-AG (ETR:AOX) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for alstria office REIT-AG

How Does Olivier Elamine's Compensation Compare With Similar Sized Companies?

Our data indicates that alstria office REIT-AG is worth €2.6b, and total annual CEO compensation is €1.2m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €440k. We examined companies with market caps from €1.8b to €5.7b, and discovered that the median CEO total compensation of that group was €2.3m.

A first glance this seems like a real positive for shareholders, since Olivier Elamine is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at alstria office REIT-AG, below.

XTRA:AOX CEO Compensation, July 8th 2019
XTRA:AOX CEO Compensation, July 8th 2019

Is alstria office REIT-AG Growing?

alstria office REIT-AG has increased its earnings per share (EPS) by an average of 75% a year, over the last three years (using a line of best fit). Its revenue is down -13% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.

Has alstria office REIT-AG Been A Good Investment?

I think that the total shareholder return of 42%, over three years, would leave most alstria office REIT-AG shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

It appears that alstria office REIT-AG remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Olivier Elamine deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling alstria office REIT-AG shares (free trial).

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

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 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. Thank you for reading.