Is ecotel communication ag (ETR:E4C) Excessively Paying Its CEO?

In This Article:

The CEO of ecotel communication ag (ETR:E4C) is Peter Zils. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

View our latest analysis for ecotel communication ag

How Does Peter Zils's Compensation Compare With Similar Sized Companies?

According to our data, ecotel communication ag has a market capitalization of €24m, and paid its CEO total annual compensation worth €435k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €345k. We examined a group of similar sized companies, with market capitalizations of below €180m. The median CEO total compensation in that group is €384k.

So Peter Zils 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 a visual representation of the CEO compensation at ecotel communication ag, below.

XTRA:E4C CEO Compensation, January 18th 2020
XTRA:E4C CEO Compensation, January 18th 2020

Is ecotel communication ag Growing?

On average over the last three years, ecotel communication ag has shrunk earnings per share by 48% each year (measured with a line of best fit). It saw its revenue drop 17% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 ecotel communication ag Been A Good Investment?

With a three year total loss of 12%, ecotel communication ag would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Peter Zils is paid around what is normal the leaders of comparable size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ecotel communication ag.