Is UNITEDLABELS Aktiengesellschaft's (ETR:ULC) CEO Pay Justified?
The CEO of UNITEDLABELS Aktiengesellschaft (ETR:ULC) is Peter Boder. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for UNITEDLABELS
How Does Peter Boder's Compensation Compare With Similar Sized Companies?
Our data indicates that UNITEDLABELS Aktiengesellschaft is worth €15m, and total annual CEO compensation is €286k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €205k. We looked at a group of companies with market capitalizations under €180m, and the median CEO total compensation was €217k.
Thus we can conclude that Peter Boder receives more in total compensation than the median of a group of companies in the same market, and of similar size to UNITEDLABELS Aktiengesellschaft. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at UNITEDLABELS, below.
Is UNITEDLABELS Aktiengesellschaft Growing?
Over the last three years UNITEDLABELS Aktiengesellschaft has grown its earnings per share (EPS) by an average of 111% per year (using a line of best fit). It saw its revenue drop -11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has UNITEDLABELS Aktiengesellschaft Been A Good Investment?
Since shareholders would have lost about 34% over three years, some UNITEDLABELS Aktiengesellschaft shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at UNITEDLABELS Aktiengesellschaft with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling UNITEDLABELS (free visualization of insider trades).
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.
