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Massimo Zanetti became the CEO of Massimo Zanetti Beverage Group S.p.A. (BIT:MZB) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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 Massimo Zanetti’s Compensation Compare With Similar Sized Companies?
Our data indicates that Massimo Zanetti Beverage Group S.p.A. is worth €216m, and total annual CEO compensation is €600k. (This figure is for the year to 2015). Notably, the salary of €600k is the vast majority of the CEO compensation. We examined companies with market caps from €89m to €355m, and discovered that the median CEO compensation of that group was €451k.
It would therefore appear that Massimo Zanetti Beverage Group S.p.A. pays Massimo Zanetti more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Massimo Zanetti Beverage Group has changed from year to year.
Is Massimo Zanetti Beverage Group S.p.A. Growing?
Massimo Zanetti Beverage Group S.p.A. has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). Its revenue is down -5.6% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Massimo Zanetti Beverage Group S.p.A. Been A Good Investment?
Since shareholders would have lost about 10% over three years, some Massimo Zanetti Beverage Group S.p.A. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Massimo Zanetti Beverage Group S.p.A. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Massimo Zanetti Beverage Group insiders are buying or selling shares.
If you want to buy a stock that is better than Massimo Zanetti Beverage Group, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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. On rare occasion, data errors may occur. Thank you for reading.