Our Take On EuKedos' (BIT:EUK) CEO Salary

Carlo Iuculano has been the CEO of EuKedos S.p.A. (BIT:EUK) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for EuKedos.

View our latest analysis for EuKedos

Comparing EuKedos S.p.A.'s CEO Compensation With the industry

At the time of writing, our data shows that EuKedos S.p.A. has a market capitalization of €23m, and reported total annual CEO compensation of €245k for the year to December 2019. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €245k.

On comparing similar-sized companies in the industry with market capitalizations below €165m, we found that the median total CEO compensation was €245k. This suggests that EuKedos remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. At the company level, EuKedos pays Carlo Iuculano solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

EuKedos S.p.A.'s Growth

EuKedos S.p.A.'s earnings per share (EPS) grew 47% per year over the last three years. Its revenue is down 2.1% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has EuKedos S.p.A. Been A Good Investment?

Since shareholders would have lost about 2.3% over three years, some EuKedos S.p.A. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

EuKedos rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, EuKedos pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. Overall, we wouldn't say Carlo is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for EuKedos that investors should look into moving forward.

Switching gears from EuKedos, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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