Is USU Software AG's (ETR:OSP2) CEO Pay Fair?
Bernhard Oberschmidt is the CEO of USU Software AG (ETR:OSP2). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for USU Software
How Does Bernhard Oberschmidt's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that USU Software AG has a market cap of €182m, and reported total annual CEO compensation of €352k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €184k. We looked at a group of companies with market capitalizations from €91m to €363m, and the median CEO total compensation was €574k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at USU Software has changed over time.
Is USU Software AG Growing?
Over the last three years USU Software AG has shrunk its earnings per share by an average of 62% per year (measured with a line of best fit). In the last year, its revenue is up 5.8%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has USU Software AG Been A Good Investment?
With a three year total loss of 20%, USU Software AG would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It looks like USU Software AG pays its CEO less than similar sized companies.
Bernhard Oberschmidt is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. 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 USU Software.
If you want to buy a stock that is better than USU Software, this free list of high return, low debt companies is a great place to look.
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