In 2017 Stefan Traeger was appointed CEO of Jenoptik AG (ETR:JEN). First, this article will compare CEO compensation with compensation at similar sized 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 process should give us an idea about how appropriately the CEO is paid.
How Does Stefan Traeger's Compensation Compare With Similar Sized Companies?
Our data indicates that Jenoptik AG is worth €1.7b, and total annual CEO compensation was reported as €1.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €600k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from €908m to €2.9b, and the median CEO total compensation was €1.4m.
So Stefan Traeger receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Jenoptik, below.
Is Jenoptik AG Growing?
Jenoptik AG has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). Its revenue is up 6.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Jenoptik AG Been A Good Investment?
Boasting a total shareholder return of 94% over three years, Jenoptik AG 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.
Stefan Traeger is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Jenoptik.
If you want to buy a stock that is better than Jenoptik, this free list of high return, low debt companies is a great place to look.
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