In 2015 Alexander von Witzleben was appointed CEO of Arbonia AG (VTX:ARBN). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Alexander von Witzleben's Compensation Compare With Similar Sized Companies?
According to our data, Arbonia AG has a market capitalization of CHF765m, and paid its CEO total annual compensation worth CHF1.4m over the year to December 2019. That's less than last year. While we always look at total compensation first, we note that the salary component is less, at CHF979k. We looked at a group of companies with market capitalizations from CHF391m to CHF1.6b, and the median CEO total compensation was CHF985k.
It would therefore appear that Arbonia AG pays Alexander von Witzleben 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. 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, below, how CEO compensation at Arbonia has changed over time.
Is Arbonia AG Growing?
Over the last three years Arbonia AG has grown its earnings per share (EPS) by an average of 30% per year (using a line of best fit). In the last year, its revenue is up 4.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Arbonia AG Been A Good Investment?
With a three year total loss of 36%, Arbonia AG would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Arbonia AG, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Arbonia shares (free trial).
If you want to buy a stock that is better than Arbonia, this free list of high return, low debt companies is a great place to look.
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