Stock Analysis

Atlantic Grupa d.d.'s (ZGSE:ATGR) CEO Compensation Looks Acceptable To Us And Here's Why

  •  Updated
ZGSE:ATGR
Source: Shutterstock

Under the guidance of CEO Emil Tedeschi, Atlantic Grupa d.d. (ZGSE:ATGR) has performed reasonably well recently. As shareholders go into the upcoming AGM on 16 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Atlantic Grupa d.d

Comparing Atlantic Grupa d.d.'s CEO Compensation With the industry

According to our data, Atlantic Grupa d.d. has a market capitalization of Kn5.0b, and paid its CEO total annual compensation worth Kn4.6m over the year to December 2020. That's just a smallish increase of 3.5% on last year. In particular, the salary of Kn2.75m, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from Kn2.5b to Kn9.8b, we found that the median CEO total compensation was Kn4.6m. This suggests that Atlantic Grupa d.d remunerates its CEO largely in line with the industry average. Furthermore, Emil Tedeschi directly owns Kn2.5b worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary Kn2.7m Kn2.7m 59%
Other Kn1.9m Kn1.7m 41%
Total CompensationKn4.6m Kn4.5m100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. In Atlantic Grupa d.d's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ZGSE:ATGR CEO Compensation June 9th 2021

A Look at Atlantic Grupa d.d.'s Growth Numbers

Atlantic Grupa d.d.'s earnings per share (EPS) grew 5.8% per year over the last three years. In the last year, its revenue is down 5.2%.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Atlantic Grupa d.d. Been A Good Investment?

Boasting a total shareholder return of 57% over three years, Atlantic Grupa d.d. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

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 did our research and spotted 1 warning sign for Atlantic Grupa d.d that investors should look into moving forward.

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.

If you're looking for stocks to buy, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether Atlantic Grupa d.d is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

About ZGSE:ATGR

Atlantic Grupa d.d

Atlantic Grupa d.d., together with its subsidiaries, engages in the research, development, production, and distribution fast moving consumer goods in Southeast Europe, the European markets, Russia, and the Commonwealth of Independent States.

Flawless balance sheet second-rate dividend payer.