The CEO of Viscofan, S.A. (BME:VIS) is José Domingo de Ampuero y Osma, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Viscofan pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Viscofan
How Does Total Compensation For José Domingo de Ampuero y Osma Compare With Other Companies In The Industry?
At the time of writing, our data shows that Viscofan, S.A. has a market capitalization of €2.7b, and reported total annual CEO compensation of €1.0m for the year to December 2019. Notably, that's a decrease of 12% over the year before. We note that the salary portion, which stands at €595.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between €1.6b and €5.3b had a median total CEO compensation of €1.4m. So it looks like Viscofan compensates José Domingo de Ampuero y Osma in line with the median for the industry. What's more, José Domingo de Ampuero y Osma holds €3.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €595k | €585k | 58% |
| Other | €437k | €590k | 42% |
| Total Compensation | €1.0m | €1.2m | 100% |
On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. There isn't a significant difference between Viscofan and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Viscofan, S.A.'s Growth
Over the last three years, Viscofan, S.A. has shrunk its earnings per share by 2.0% per year. It achieved revenue growth of 7.4% over the last year.
A lack of EPS improvement is not good to see. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Viscofan, S.A. Been A Good Investment?
With a total shareholder return of 17% over three years, Viscofan, S.A. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, Viscofan, S.A. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. According to our analysis, Viscofan is suffering from uninspiring EPS growth, and even though shareholder returns are stable, they are hardly impressive. These figures do not go well against CEO compensation, which is more or less equal to the industry median. We wouldn't go as far as saying CEO compensation is inappropriate, but we don't think the executive is underpaid.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Viscofan that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About BME:VIS
Excellent balance sheet with proven track record.
