Is Evotec AG’s (ETR:EVT) CEO Paid Enough To Stay Motivated?

In This Article:

In 2013 Werner Lanthaler was appointed CEO of Evotec AG (ETR:EVT). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.

View our latest analysis for Evotec

How Does Werner Lanthaler’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Evotec AG has a market cap of €2.8b, and is paying total annual CEO compensation of €2m. That’s a notable increase of 8.3% on last year. We looked at a group of companies with market capitalizations from €1.8b to €5.6b, and the median CEO compensation was €2m.

So Werner Lanthaler 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 Evotec, below.

XTRA:EVT CEO Compensation November 10th 18
XTRA:EVT CEO Compensation November 10th 18

Is Evotec AG Growing?

Over the last three years Evotec AG has grown its earnings per share (EPS) by an average of 27% per year. Its revenue is up 69% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Evotec AG Been A Good Investment?

Boasting a total shareholder return of 355% over three years, Evotec AG has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Werner Lanthaler is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Evotec AG insiders are buying or selling shares.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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.