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In 2016 Rüdiger Günther was appointed CEO of Francotyp-Postalia Holding AG (ETR:FPH). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Francotyp-Postalia Holding
How Does Rüdiger Günther's Compensation Compare With Similar Sized Companies?
According to our data, Francotyp-Postalia Holding AG has a market capitalization of €56m, and paid its CEO total annual compensation worth €987k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €400k. We took a group of companies with market capitalizations below €183m, and calculated the median CEO total compensation to be €206k.
It would therefore appear that Francotyp-Postalia Holding AG pays Rüdiger Günther more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Francotyp-Postalia Holding has changed over time.
Is Francotyp-Postalia Holding AG Growing?
Francotyp-Postalia Holding AG has reduced its earnings per share by an average of 43% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 2.5% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Francotyp-Postalia Holding AG Been A Good Investment?
With a three year total loss of 11%, Francotyp-Postalia Holding AG would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Francotyp-Postalia Holding AG with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.