How Much is Hornbach Holding AG & Co. KGaA's (FRA:HBH) CEO Getting Paid?

Simply Wall St

Mon, Jun 24, 2019, 12:49 AM

Albrecht Hornbach is the CEO of Hornbach Holding AG & Co. KGaA (FRA:HBH). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Hornbach Holding KGaA

How Does Albrecht Hornbach's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Hornbach Holding AG & Co. KGaA has a market cap of €727m, and is paying total annual CEO compensation of €1.0m. (This is based on the year to February 2019). That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at €419k. When we examined a selection of companies with market caps ranging from €353m to €1.4b, we found the median CEO total compensation was €1.0m.

So Albrecht Hornbach is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

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 4.8% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 5.3%.

Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Hornbach Holding AG & Co. KGaA Been A Good Investment?

Since shareholders would have lost about 17% over three years, some Hornbach Holding AG & Co. KGaA shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.