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Lorenzo Coppini has been the CEO of B&C Speakers S.p.A. (BIT:BEC) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Lorenzo Coppini’s Compensation Compare With Similar Sized Companies?
According to our data, B&C Speakers S.p.A. has a market capitalization of €127m, and pays its CEO total annual compensation worth €190k. (This figure is for the year to 2017). Notably, the salary of €190k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under €200m, and the median CEO compensation was €321k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at B&C Speakers has changed from year to year.
Is B&C Speakers S.p.A. Growing?
On average over the last three years, B&C Speakers S.p.A. has grown earnings per share (EPS) by 13% each year (using a line of best fit). It achieved revenue growth of 31% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has B&C Speakers S.p.A. Been A Good Investment?
Most shareholders would probably be pleased with B&C Speakers S.p.A. for providing a total return of 96% over three years. 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.
It appears that B&C Speakers S.p.A. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Lorenzo Coppini deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling B&C Speakers shares (free trial).
Important note: B&C Speakers 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 email@example.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.