The CEO of Solutions 30 SE (EPA:S30) is Gianbeppi Fortis, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Solutions 30
Comparing Solutions 30 SE's CEO Compensation With the industry
According to our data, Solutions 30 SE has a market capitalization of €2.0b, and paid its CEO total annual compensation worth €462k over the year to December 2019. That's a modest increase of 5.5% on the prior year. In particular, the salary of €302.8k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between €1.6b and €5.3b had a median total CEO compensation of €1.1m. Accordingly, Solutions 30 pays its CEO under the industry median. Furthermore, Gianbeppi Fortis directly owns €327m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €303k | €279k | 66% |
| Other | €159k | €159k | 34% |
| Total Compensation | €462k | €438k | 100% |
Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. Although there is a difference in how total compensation is set, Solutions 30 more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Solutions 30 SE's Growth
Solutions 30 SE's earnings per share (EPS) grew 38% per year over the last three years. Its revenue is up 22% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Solutions 30 SE Been A Good Investment?
Most shareholders would probably be pleased with Solutions 30 SE for providing a total return of 188% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
As we noted earlier, Solutions 30 pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 4 warning signs for Solutions 30 that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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. 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.
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About ENXTPA:S30
Solutions 30
Provides support solutions for new digital technologies in France, Italy, Germany, the Netherlands, Belgium, Luxembourg, Poland, and Spain.
Reasonable growth potential and fair value.
