Yahoo News How Should Investors Feel About AKKA Technologies SE's (EPA:AKA) CEO Pay?
The CEO of AKKA Technologies SE (EPA:AKA) is Mauro Ricci. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for AKKA Technologies
How Does Mauro Ricci's Compensation Compare With Similar Sized Companies?
According to our data, AKKA Technologies SE has a market capitalization of €1.2b, and paid its CEO total annual compensation worth €1.6m over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth €1.6m. We examined companies with market caps from €921m to €2.9b, and discovered that the median CEO total compensation of that group was €1.0m.
It would therefore appear that AKKA Technologies SE pays Mauro Ricci 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at AKKA Technologies, below.
Is AKKA Technologies SE Growing?
Over the last three years AKKA Technologies SE has grown its earnings per share (EPS) by an average of 39% per year (using a line of best fit). It achieved revenue growth of 22% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has AKKA Technologies SE Been A Good Investment?
Most shareholders would probably be pleased with AKKA Technologies SE for providing a total return of 53% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared the total CEO remuneration paid by AKKA Technologies SE, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AKKA Technologies (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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