Is EVN AG (VIE:EVN) Overpaying Its CEO?

The CEO of EVN AG (VIE:EVN) is Stefan Szyszkowitz. 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. 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.

Check out our latest analysis for EVN

How Does Stefan Szyszkowitz's Compensation Compare With Similar Sized Companies?

According to our data, EVN AG has a market capitalization of €2.3b, and paid its CEO total annual compensation worth €651k over the year to September 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €415k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €1.9b to €5.9b. The median total CEO compensation was €1.9m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where EVN stands. On a sector level, around 64% of total compensation represents salary and 36% is other remuneration. Our data reveals that EVN allocates salary in line with the wider market.

Most shareholders would consider it a positive that Stefan Szyszkowitz takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. 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 EVN, below.

Is EVN AG Growing?

Over the last three years EVN AG has seen earnings per share (EPS) move in a positive direction by an average of 7.7% per year (using a line of best fit). In the last year, its revenue is up 5.0%.

I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.

Has EVN AG Been A Good Investment?

EVN AG has generated a total shareholder return of 20% 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...

EVN AG is currently paying its CEO below what is normal for companies of its size.

Stefan Szyszkowitz receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. Moving away from CEO compensation for the moment, we've identified 1 warning sign for EVN that you should be aware of before investing.

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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