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In 2016 Daniele Di Croce was appointed CEO of RealTech AG (ETR:RTC). 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. 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 Daniele Di Croce's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that RealTech AG has a market cap of €5.7m, and is paying total annual CEO compensation of €233k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at €173k. We looked at a group of companies with market capitalizations under €178m, and the median CEO total compensation was €217k.
So Daniele Di Croce is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at RealTech has changed from year to year.
Is RealTech AG Growing?
Over the last three years RealTech AG has grown its earnings per share (EPS) by an average of 81% per year (using a line of best fit). In the last year, its revenue is down -20%.
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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has RealTech AG Been A Good Investment?
With a three year total loss of 39%, RealTech AG would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Daniele Di Croce is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling RealTech shares (free trial).
Important note: RealTech may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 firstname.lastname@example.org. 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.