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In 2003 Markus Blocher was appointed CEO of Dottikon Es Holding AG (VTX:DESN). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Dottikon Es Holding
How Does Markus Blocher's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Dottikon Es Holding AG has a market cap of CHF543m, and is paying total annual CEO compensation of CHF627k. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at CHF225k. When we examined a selection of companies with market caps ranging from CHF203m to CHF814m, we found the median CEO total compensation was CHF908k.
A first glance this seems like a real positive for shareholders, since Markus Blocher is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Dottikon Es Holding has changed from year to year.
Is Dottikon Es Holding AG Growing?
Dottikon Es Holding AG has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). Its revenue is down -5.9% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Dottikon Es Holding AG Been A Good Investment?
Boasting a total shareholder return of 41% over three years, Dottikon Es Holding AG has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It appears that Dottikon Es Holding AG remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Markus Blocher deserves a raise!