Why OVB Holding AG's (ETR:O4B) CEO Pay Matters To You
Mario Freis became the CEO of OVB Holding AG (ETR:O4B) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
See our latest analysis for OVB Holding
How Does Mario Freis's Compensation Compare With Similar Sized Companies?
Our data indicates that OVB Holding AG is worth €242m, and total annual CEO compensation was reported as €746k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €420k. We looked at a group of companies with market capitalizations from €91m to €363m, and the median CEO total compensation was €467k.
It would therefore appear that OVB Holding AG pays Mario Freis 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.
You can see, below, how CEO compensation at OVB Holding has changed over time.
Is OVB Holding AG Growing?
On average over the last three years, OVB Holding AG has shrunk earnings per share by 6.9% each year (measured with a line of best fit). In the last year, its revenue is up 10%.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. 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 OVB Holding AG Been A Good Investment?
OVB Holding AG has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at OVB Holding 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.
We think many shareholders would be underwhelmed with the business growth over the last three years. And while shareholder returns have been respectable, they have hardly been superb. So we doubt many shareholders would consider the CEO pay to be particularly modest! Whatever your view on compensation, you might want to check if insiders are buying or selling OVB Holding shares (free trial).
If you want to buy a stock that is better than OVB Holding, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
