Alberto Nagel has been the CEO of Mediobanca Banca di Credito Finanziario S.p.A. (BIT:MB) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Alberto Nagel’s Compensation Compare With Similar Sized Companies?
Our data indicates that Mediobanca Banca di Credito Finanziario S.p.A. is worth €7.6b, and total annual CEO compensation was reported as €3.3m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at €1.9m. When we examined a selection of companies with market caps ranging from €3.7b to €11b, we found the median CEO total compensation was €2.5m.
It would therefore appear that Mediobanca Banca di Credito Finanziario S.p.A. pays Alberto Nagel 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, below, how CEO compensation at Mediobanca Banca di Credito Finanziario has changed over time.
Is Mediobanca Banca di Credito Finanziario S.p.A. Growing?
On average over the last three years, Mediobanca Banca di Credito Finanziario S.p.A. has grown earnings per share (EPS) by 3.7% each year (using a line of best fit). In the last year, its revenue is up 3.5%.
I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has Mediobanca Banca di Credito Finanziario S.p.A. Been A Good Investment?
I think that the total shareholder return of 35%, over three years, would leave most Mediobanca Banca di Credito Finanziario S.p.A. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Mediobanca Banca di Credito Finanziario S.p.A., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Mediobanca Banca di Credito Finanziario insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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