Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Claus Bolza-Schünemann became the CEO of Koenig & Bauer AG (FRA:SKB) in 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Koenig & Bauer

How Does Claus Bolza-Schünemann's Compensation Compare With Similar Sized Companies?

Our data indicates that Koenig & Bauer AG is worth €636m, and total annual CEO compensation is €1.5m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €450k. We looked at a group of companies with market capitalizations from €356m to €1.4b, and the median CEO total compensation was €1.0m.

Thus we can conclude that Claus Bolza-Schünemann receives more in total compensation than the median of a group of companies in the same market, and of similar size to Koenig & Bauer AG. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Koenig & Bauer has changed from year to year.

Is Koenig & Bauer AG Growing?

Over the last three years Koenig & Bauer AG has grown its earnings per share (EPS) by an average of 5.0% per year (using a line of best fit). Its revenue is up 5.4% over last year.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.

Has Koenig & Bauer AG Been A Good Investment?

Given the total loss of 12% over three years, many shareholders in Koenig & Bauer AG are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at Koenig & Bauer AG with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. So you may want to check if insiders are buying Koenig & Bauer shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.