Stock Analysis

How Much Did Mediobanca Banca di Credito Finanziario S.p.A.'s (BIT:MB) CEO Pocket Last Year?

BIT:MB
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In 2008 Alberto Nagel was appointed CEO of Mediobanca Banca di Credito Finanziario S.p.A. (BIT:MB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Mediobanca Banca di Credito Finanziario

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How Does Alberto Nagel's Compensation Compare With Similar Sized Companies?

According to our data, Mediobanca Banca di Credito Finanziario S.p.A. has a market capitalization of €9.2b, and paid its CEO total annual compensation worth €3.3m over the year to June 2019. That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at €1.9m. When we examined a group of companies with market caps over €7.3b, we found that their median CEO total compensation was €764k. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

Thus we can conclude that Alberto Nagel receives more in total compensation than the median of a group of large companies in the same market as Mediobanca Banca di Credito Finanziario S.p.A.. However, this doesn't necessarily mean the pay 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 Mediobanca Banca di Credito Finanziario, below.

BIT:MB CEO Compensation, November 14th 2019
BIT:MB CEO Compensation, November 14th 2019

Is Mediobanca Banca di Credito Finanziario S.p.A. Growing?

Over the last three years Mediobanca Banca di Credito Finanziario S.p.A. has grown its earnings per share (EPS) by an average of 6.4% per year (using a line of best fit). It achieved revenue growth of 20% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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?

Most shareholders would probably be pleased with Mediobanca Banca di Credito Finanziario S.p.A. for providing a total return of 75% over three years. 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...

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 other large companies. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Mediobanca Banca di Credito Finanziario insiders are buying or selling shares.

If you want to buy a stock that is better than Mediobanca Banca di Credito Finanziario, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.