Rainer Isenrich has been the CEO of Edisun Power Europe AG (VTX:ESUN) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
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See our latest analysis for Edisun Power Europe
How Does Rainer Isenrich's Compensation Compare With Similar Sized Companies?
Our data indicates that Edisun Power Europe AG is worth CHF48m, and total annual CEO compensation is CHF310k. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CHF194k. We examined a group of similar sized companies, with market capitalizations of below CHF202m. The median CEO total compensation in that group is CHF503k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Edisun Power Europe has changed over time.
Is Edisun Power Europe AG Growing?
On average over the last three years, Edisun Power Europe AG has grown earnings per share (EPS) by 32% each year (using a line of best fit). Its revenue is up 45% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Edisun Power Europe AG Been A Good Investment?
I think that the total shareholder return of 123%, over three years, would leave most Edisun Power Europe AG shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Edisun Power Europe AG is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Rainer Isenrich deserves a raise!