This Is Why Aena S.M.E., S.A.'s (BME:AENA) CEO Can Expect A Bump Up In Their Pay Packet

Key Insights

• Aena S.M.E will host its Annual General Meeting on 11th of April
• Total pay for CEO Maurici Lucena Betriu includes €172.0k salary
• Total compensation is 42% below industry average
• Over the past three years, Aena S.M.E's EPS grew by 111% and over the past three years, the total shareholder return was 32%

Shareholders will probably not be disappointed by the robust results at Aena S.M.E., S.A. (BME:AENA) recently and they will be keeping this in mind as they go into the AGM on 11th of April. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for Aena S.M.E

How Does Total Compensation For Maurici Lucena Betriu Compare With Other Companies In The Industry?

According to our data, Aena S.M.E., S.A. has a market capitalization of €27b, and paid its CEO total annual compensation worth €187k over the year to December 2023. That's a modest increase of 3.3% on the prior year. In particular, the salary of €172.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies in the Spain Infrastructure industry with market capitalizations above €7.4b, we found that the median total CEO compensation was €322k. Accordingly, Aena S.M.E pays its CEO under the industry median.

Component	2023	2022	Proportion (2023)
Salary	€172k	€167k	92%
Other	€15k	€14k	8%
Total Compensation	€187k	€181k	100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. According to our research, Aena S.M.E has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Aena S.M.E., S.A.'s Growth Numbers

Aena S.M.E., S.A.'s earnings per share (EPS) grew 111% per year over the last three years. Its revenue is up 20% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Aena S.M.E., S.A. Been A Good Investment?

Aena S.M.E., S.A. has served shareholders reasonably well, with a total return of 32% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 2 warning signs for Aena S.M.E that investors should be aware of in a dynamic business environment.

Switching gears from Aena S.M.E, 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.