Here's Why It's Unlikely That Enagás, S.A.'s (BME:ENG) CEO Will See A Pay Rise This Year

Key Insights

• Enagás will host its Annual General Meeting on 26th of March
• Total pay for CEO Arturo Aizpiri includes €1.00m salary
• Total compensation is similar to the industry average
• Enagás' three-year loss to shareholders was 17% while its EPS was down 61% over the past three years

The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

Shareholders will probably not be too impressed with the underwhelming results at Enagás, S.A. (BME:ENG) recently. At the upcoming AGM on 26th of March, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Enagás

How Does Total Compensation For Arturo Aizpiri Compare With Other Companies In The Industry?

At the time of writing, our data shows that Enagás, S.A. has a market capitalization of €3.3b, and reported total annual CEO compensation of €2.1m for the year to December 2024. Notably, that's an increase of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.0m.

On examining similar-sized companies in the Spain Gas Utilities industry with market capitalizations between €1.8b and €5.9b, we discovered that the median CEO total compensation of that group was €2.3m. So it looks like Enagás compensates Arturo Aizpiri in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€1.0m	€1.0m	48%
Other	€1.1m	€802k	52%
Total Compensation	€2.1m	€1.8m	100%

On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. Although there is a difference in how total compensation is set, Enagás more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Enagás, S.A.'s Growth

Enagás, S.A. has reduced its earnings per share by 61% a year over the last three years. In the last year, its revenue changed by just 0.2%.

Overall this is not a very positive result for shareholders. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Enagás, S.A. Been A Good Investment?

With a three year total loss of 17% for the shareholders, Enagás, S.A. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Enagás (1 can't be ignored!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.