How Much Does Notorious Pictures' (BIT:NPI) CEO Make?

The CEO of Notorious Pictures S.p.A. (BIT:NPI) is Guglielmo Marchetti, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Notorious Pictures.

View our latest analysis for Notorious Pictures

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

Our data indicates that Notorious Pictures S.p.A. has a market capitalization of €38m, and total annual CEO compensation was reported as €360k for the year to December 2019. That's a notable increase of 8.8% on last year. We note that the salary portion, which stands at €201.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below €164m, reported a median total CEO compensation of €174k. This suggests that Guglielmo Marchetti is paid more than the median for the industry. Moreover, Guglielmo Marchetti also holds €32m worth of Notorious Pictures stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. There isn't a significant difference between Notorious Pictures and the broader market, in terms of salary allocation in the overall compensation package. 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.

Notorious Pictures S.p.A.'s Growth

Notorious Pictures S.p.A. has reduced its earnings per share by 14% a year over the last three years. Its revenue is up 2.1% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Notorious Pictures S.p.A. Been A Good Investment?

Boasting a total shareholder return of 35% over three years, Notorious Pictures S.p.A. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we noted earlier, Notorious Pictures pays its CEO higher than the norm for similar-sized companies belonging to the same industry. We're not seeing great strides in EPS, but the company has clearly pleased some investors, given the returns over the last three years. Considering positive investor returns, it would be bold of us to criticize CEO compensation, but shareholders might want to see healthier EPS growth before a raise is given out.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 3 warning signs for Notorious Pictures that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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