In This Article:
In 2011 Heinz Fuhrmann was appointed CEO of Salzgitter AG (ETR:SZG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
Check out our latest analysis for Salzgitter
How Does Heinz Fuhrmann's Compensation Compare With Similar Sized Companies?
Our data indicates that Salzgitter AG is worth €809m, and total annual CEO compensation is €2.5m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €360m to €1.4b. The median total CEO compensation was €1.1m.
As you can see, Heinz Fuhrmann is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Salzgitter AG is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Salzgitter, below.
Is Salzgitter AG Growing?
Over the last three years Salzgitter AG has grown its earnings per share (EPS) by an average of 69% per year (using a line of best fit). In the last year, its revenue is up 1.5%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Salzgitter AG Been A Good Investment?
Given the total loss of 48% over three years, many shareholders in Salzgitter AG are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Salzgitter AG with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Salzgitter.