How Should Investors Feel About Turbon AG's (FRA:TUR) CEO Pay?
The CEO of Turbon AG (FRA:TUR) is Holger Brückmann-Turbon. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Turbon
How Does Holger Brückmann-Turbon's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Turbon AG has a market cap of €10m, and reported total annual CEO compensation of €62k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €54k. We looked at a group of companies with market capitalizations under €182m, and the median CEO total compensation was €386k.
A first glance this seems like a real positive for shareholders, since Holger Brückmann-Turbon is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Turbon, below.
Is Turbon AG Growing?
Over the last three years Turbon AG has shrunk its earnings per share by an average of 100% per year (measured with a line of best fit). In the last year, its revenue is up 5.0%.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Turbon AG Been A Good Investment?
Given the total loss of 79% over three years, many shareholders in Turbon AG are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It looks like Turbon AG pays its CEO less than similar sized companies.
Shareholders should note that compensation for Holger Brückmann-Turbon is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Turbon.
Important note: Turbon 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.
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.
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