Should You Worry About UNITEDLABELS Aktiengesellschaft's (ETR:ULC) CEO Pay?
The CEO of UNITEDLABELS Aktiengesellschaft (ETR:ULC) is Peter Boder. 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. 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 UNITEDLABELS
How Does Peter Boder's Compensation Compare With Similar Sized Companies?
Our data indicates that UNITEDLABELS Aktiengesellschaft is worth €8.8m, and total annual CEO compensation was reported as €286k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €205k. We looked at a group of companies with market capitalizations under €182m, and the median CEO total compensation was €386k.
So Peter Boder receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at UNITEDLABELS has changed over time.
Is UNITEDLABELS Aktiengesellschaft Growing?
Over the last three years UNITEDLABELS Aktiengesellschaft has grown its earnings per share (EPS) by an average of 70% per year (using a line of best fit). It saw its revenue drop 16% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. 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 UNITEDLABELS Aktiengesellschaft Been A Good Investment?
Since shareholders would have lost about 54% over three years, some UNITEDLABELS Aktiengesellschaft shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Peter Boder is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying UNITEDLABELS shares with their own money (free access).
Important note: UNITEDLABELS 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.
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.
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. Thank you for reading.
