Giorgio Basile is the CEO of Isagro S.p.A. (BIT:ISG), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Isagro S.p.A.'s CEO Compensation With the industry
Our data indicates that Isagro S.p.A. has a market capitalization of €35m, and total annual CEO compensation was reported as €504k for the year to December 2019. We note that's a decrease of 25% compared to last year. Notably, the salary which is €500.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below €168m, we found that the median total CEO compensation was €260k. Accordingly, our analysis reveals that Isagro S.p.A. pays Giorgio Basile north of the industry median.
Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. Isagro pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Isagro S.p.A.'s Growth
Over the last three years, Isagro S.p.A. has shrunk its earnings per share by 95% per year. It achieved revenue growth of 19% over the last year.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Isagro S.p.A. Been A Good Investment?
With a three year total loss of 49% for the shareholders, Isagro S.p.A. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Isagro pays its CEO a majority of compensation through a salary. As we touched on above, Isagro S.p.A. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, looking at EPS and total shareholder returns, it's tough to say Isagro is in a sound position, considering both metrics are down. On a more positive note, the company has produced a more positive revenue growth more recently. Suffice it to say, we don't think the CEO is underpaid!
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Isagro that investors should be aware of in a dynamic business environment.
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.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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