Does Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien's (ETR:BVB) CEO Salary Compare Well With Others?
The CEO of Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (ETR:BVB) is Hans-Joachim Watzke. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien
How Does Hans-Joachim Watzke's Compensation Compare With Similar Sized Companies?
According to our data, Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien has a market capitalization of €771m, and paid its CEO total annual compensation worth €2.7m over the year to June 2019. That's a modest increase of 4.0% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.9m. We examined companies with market caps from €362m to €1.4b, and discovered that the median CEO total compensation of that group was €1.0m.
It would therefore appear that Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien pays Hans-Joachim Watzke more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien has changed from year to year.
Is Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien Growing?
Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien has reduced its earnings per share by an average of 39% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 8.7% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien Been A Good Investment?
I think that the total shareholder return of 52%, over three years, would leave most Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared total CEO remuneration at Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien 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.
We think many shareholders would be underwhelmed with the business growth over the last three years. However, we can't argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation. So you may want to check if insiders are buying Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien shares with their own money (free access).
Important note: Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
