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Harald Schrimpf became the CEO of PSI Software AG (ETR:PSAN) in 2013. 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.
At the time of writing, our data says that PSI Software AG has a market cap of €321m, and reported total annual CEO compensation of €1.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €422k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from €180m to €721m, and the median CEO total compensation was €730k.
It would therefore appear that PSI Software AG pays Harald Schrimpf 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.
PSI Software AG has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
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