Libertas 7, S.A.'s (BME:LIB) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Libertas 7 will host its Annual General Meeting on 28th of May
• CEO Agnes Noguera Borel's total compensation includes salary of €125.0k
• The overall pay is comparable to the industry average
• Over the past three years, Libertas 7's EPS fell by 3.5% and over the past three years, the total shareholder return was 16%

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Despite positive share price growth of 16% for Libertas 7, S.A. (BME:LIB) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 28th of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Libertas 7

Comparing Libertas 7, S.A.'s CEO Compensation With The Industry

According to our data, Libertas 7, S.A. has a market capitalization of €36m, and paid its CEO total annual compensation worth €234k over the year to December 2024. That's a notable increase of 12% on last year. Notably, the salary which is €125.0k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Spain Real Estate industry with market capitalizations below €177m, reported a median total CEO compensation of €266k. So it looks like Libertas 7 compensates Agnes Noguera Borel in line with the median for the industry. What's more, Agnes Noguera Borel holds €124k worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	€125k	€125k	53%
Other	€109k	€84k	47%
Total Compensation	€234k	€209k	100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Libertas 7 pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Libertas 7, S.A.'s Growth

Over the last three years, Libertas 7, S.A. has shrunk its earnings per share by 3.5% per year. Its revenue is down 19% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Libertas 7, S.A. Been A Good Investment?

With a total shareholder return of 16% over three years, Libertas 7, 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...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 4 warning signs for Libertas 7 that investors should be aware of in a dynamic business environment.

Switching gears from Libertas 7, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.