Here's What We Think About Evotec SE's (ETR:EVT) CEO Pay

Werner Lanthaler has been the CEO of Evotec SE (ETR:EVT) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Evotec

How Does Werner Lanthaler's Compensation Compare With Similar Sized Companies?

According to our data, Evotec SE has a market capitalization of €3.8b, and paid its CEO total annual compensation worth €1.8m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €420k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €1.8b to €5.8b. The median total CEO compensation was €1.9m.

That means Werner Lanthaler receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Evotec has changed from year to year.

XTRA:EVT CEO Compensation, January 22nd 2020
XTRA:EVT CEO Compensation, January 22nd 2020

Is Evotec SE Growing?

Over the last three years Evotec SE has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Evotec SE Been A Good Investment?

Boasting a total shareholder return of 244% over three years, Evotec SE has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Werner Lanthaler is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Evotec insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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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