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In 2015 Oliver Bäte was appointed CEO of Allianz SE (FRA:ALV). First, this article will compare CEO compensation with compensation at other large 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Allianz
How Does Oliver Bäte's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Allianz SE has a market cap of €85b, and is paying total annual CEO compensation of €6.9m. (This figure is for the year to December 2018). Notably, that's an increase of 16% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.3m. When we examined a group of companies with market caps over €7.1b, we found that their median CEO total compensation was €4.3m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
As you can see, Oliver Bäte is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Allianz SE is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Allianz, below.
Is Allianz SE Growing?
On average over the last three years, Allianz SE has grown earnings per share (EPS) by 6.6% each year (using a line of best fit). Its revenue is down -5.5% over last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Allianz SE Been A Good Investment?
Boasting a total shareholder return of 72% over three years, Allianz SE 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...
We compared the total CEO remuneration paid by Allianz SE, and compared it to remuneration at a group of other large companies. Our data suggests that it pays above the median CEO pay within that group.