How Should Investors React To Infotel SA’s (EPA:INF) CEO Pay?

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In 1979 Bernard Connes-Lafforet was appointed CEO of Infotel SA (EPA:INF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Infotel

How Does Bernard Connes-Lafforet’s Compensation Compare With Similar Sized Companies?

According to our data, Infotel SA has a market capitalization of €249m, and pays its CEO total annual compensation worth €216k. (This number is for the twelve months until December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth €216k. We examined companies with market caps from €89m to €358m, and discovered that the median CEO total compensation of that group was €272k.

So Bernard Connes-Lafforet is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Infotel has changed over time.

ENXTPA:INF CEO Compensation, May 8th 2019
ENXTPA:INF CEO Compensation, May 8th 2019

Is Infotel SA Growing?

Over the last three years Infotel SA has grown its earnings per share (EPS) by an average of 6.6% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. So while performance isn’t amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.

Has Infotel SA Been A Good Investment?

Boasting a total shareholder return of 34% over three years, Infotel SA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Bernard Connes-Lafforet is paid around what is normal the leaders of comparable size companies.

While the growth could be better, the shareholder returns are clearly good. So all things considered I’d venture that the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Infotel shares (free trial).

Important note: Infotel may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.