In This Article:
Albrecht Hornbach is the CEO of Hornbach Holding AG & Co. KGaA (ETR:HBH). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Hornbach Holding KGaA
How Does Albrecht Hornbach's Compensation Compare With Similar Sized Companies?
According to our data, Hornbach Holding AG & Co. KGaA has a market capitalization of €797m, and pays its CEO total annual compensation worth €1.0m. (This number is for the twelve months until February 2019). We think total compensation is more important but we note that the CEO salary is lower, at €419k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €362m to €1.4b. The median total CEO compensation was €1.0m.
So Albrecht Hornbach 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.
You can see, below, how CEO compensation at Hornbach Holding KGaA has changed over time.
Is Hornbach Holding AG & Co. KGaA Growing?
Hornbach Holding AG & Co. KGaA has reduced its earnings per share by an average of 5.8% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 7.2% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Hornbach Holding AG & Co. KGaA Been A Good Investment?
Since shareholders would have lost about 11% over three years, some Hornbach Holding AG & Co. KGaA shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Albrecht Hornbach is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hornbach Holding KGaA.