ENCE Energía y Celulosa, S.A.'s (BME:ENC) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
- ENCE Energía y Celulosa to hold its Annual General Meeting on 2nd of April
- Salary of €135.0k is part of CEO Ignacio de Colmenares y Brunet's total remuneration
- Total compensation is similar to the industry average
- ENCE Energía y Celulosa's EPS grew by 24% over the past three years while total shareholder return over the past three years was 29%
CEO Ignacio de Colmenares y Brunet has done a decent job of delivering relatively good performance at ENCE Energía y Celulosa, S.A. (BME:ENC) recently. As shareholders go into the upcoming AGM on 2nd of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for ENCE Energía y Celulosa
How Does Total Compensation For Ignacio de Colmenares y Brunet Compare With Other Companies In The Industry?
Our data indicates that ENCE Energía y Celulosa, S.A. has a market capitalization of €797m, and total annual CEO compensation was reported as €135k for the year to December 2024. This was the same amount the CEO received in the prior year. Notably, the salary of €135k is the entirety of the CEO compensation.
On comparing similar companies from the Spain Forestry industry with market caps ranging from €372m to €1.5b, we found that the median CEO total compensation was €166k. So it looks like ENCE Energía y Celulosa compensates Ignacio de Colmenares y Brunet in line with the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €135k | €135k | 100% |
| Other | - | - | - |
| Total Compensation | €135k | €135k | 100% |
Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. On a company level, ENCE Energía y Celulosa prefers to reward its CEO through a salary, opting not to pay Ignacio de Colmenares y Brunet through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
ENCE Energía y Celulosa, S.A.'s Growth
ENCE Energía y Celulosa, S.A.'s earnings per share (EPS) grew 24% per year over the last three years. In the last year, its revenue is up 4.1%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 ENCE Energía y Celulosa, S.A. Been A Good Investment?
With a total shareholder return of 29% over three years, ENCE Energía y Celulosa, S.A. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
ENCE Energía y Celulosa pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for ENCE Energía y Celulosa that you should be aware of before investing.
Important note: ENCE Energía y Celulosa is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.