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In 2006 Cornelius Patt was appointed CEO of zooplus AG (FRA:ZO1). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 zooplus
How Does Cornelius Patt's Compensation Compare With Similar Sized Companies?
Our data indicates that zooplus AG is worth €681m, and total annual CEO compensation is €473k. (This number is for the twelve months until December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth €450k. We examined companies with market caps from €357m to €1.4b, and discovered that the median CEO total compensation of that group was €1.0m.
A first glance this seems like a real positive for shareholders, since Cornelius Patt is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at zooplus has changed from year to year.
Is zooplus AG Growing?
Over the last three years zooplus AG has shrunk its earnings per share by an average of 77% per year (measured with a line of best fit). Its revenue is up 16% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has zooplus AG Been A Good Investment?
Given the total loss of 21% over three years, many shareholders in zooplus AG are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It appears that zooplus AG remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Cornelius Patt is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at zooplus.