In This Article:
Carsten Spohr became the CEO of Deutsche Lufthansa AG (FRA:LHA) in 2014. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Deutsche Lufthansa
How Does Carsten Spohr’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Deutsche Lufthansa AG has a market cap of €9.6b, and is paying total annual CEO compensation of €4.6m. We note that’s an increase of 22% above last year. We took a group of companies with market capitalizations over €7.0b, and calculated the median CEO compensation to be €3.9m.
So Carsten Spohr is paid around the average of 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 Deutsche Lufthansa has changed over time.
Is Deutsche Lufthansa AG Growing?
Deutsche Lufthansa AG has increased its earnings per share (EPS) by an average of 20% a year, over the last three years In the last year, its revenue is up 3.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Deutsche Lufthansa AG Been A Good Investment?
Most shareholders would probably be pleased with Deutsche Lufthansa AG for providing a total return of 70% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Remuneration for Carsten Spohr is close enough to the median pay for a CEO of a large company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance!
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.