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Should You Worry About CEWE Stiftung & Co. KGaA's (ETR:CWC) CEO Pay Cheque?

Simply Wall St

The CEO of CEWE Stiftung & Co. KGaA (ETR:CWC) is Christian Friege. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for CEWE Stiftung KGaA

How Does Christian Friege's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that CEWE Stiftung & Co. KGaA has a market cap of €599m, and reported total annual CEO compensation of €861k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €360k. We examined companies with market caps from €374m to €1.5b, and discovered that the median CEO total compensation of that group was €1.3m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 61% of total compensation out of all the companies we analysed, while other remuneration made up 39% of the pie. Non-salary compensation represents a greater slice of the remuneration pie for CEWE Stiftung KGaA, in sharp contrast to the overall sector.

Most shareholders would consider it a positive that Christian Friege takes less total compensation than the CEOs of most similar size companies, leaving more 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 CEWE Stiftung KGaA has changed over time.

XTRA:CWC CEO Compensation, March 21st 2020

Is CEWE Stiftung & Co. KGaA Growing?

CEWE Stiftung & Co. KGaA has increased its earnings per share (EPS) by an average of 8.5% a year, over the last three years (using a line of best fit). It achieved revenue growth of 10.0% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.

Has CEWE Stiftung & Co. KGaA Been A Good Investment?

CEWE Stiftung & Co. KGaA has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

It looks like CEWE Stiftung & Co. KGaA pays its CEO less than similar sized companies.

Christian Friege is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. But on this analysis I see no issue with the CEO compensation. Moving away from CEO compensation for the moment, we've identified 1 warning sign for CEWE Stiftung KGaA that you should be aware of before investing.

If you want to buy a stock that is better than CEWE Stiftung KGaA, this free list of high return, low debt companies is a great place to look.

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.

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