Michele Colaninno became the CEO of Immsi S.p.A. (BIT:IMS) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Michele Colaninno’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Immsi S.p.A. has a market cap of €137m, and is paying total annual CEO compensation of €691k. (This figure is for the year to 2015). While we always look at total compensation first, we note that the salary component is less, at €490k. We examined companies with market caps from €88m to €353m, and discovered that the median CEO compensation of that group was €439k.
As you can see, Michele Colaninno is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Immsi S.p.A. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. Take a look at Immsi’s key growth metrics by clicking on this link to view earnings, revenue and cash flow.
The graphic below shows how CEO compensation at Immsi has changed from year to year.
Is Immsi S.p.A. Growing?
Immsi S.p.A. has increased its earnings per share (EPS) by an average of 117% a year, over the last three years Its revenue is up 2.3% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Has Immsi S.p.A. Been A Good Investment?
Since shareholders would have lost about 9.5% over three years, some Immsi S.p.A. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Immsi S.p.A. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Immsi.
Important note: Immsi 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.