How Is Pierrel's (BIT:PRL) CEO Paid Relative To Peers?

The CEO of Pierrel S.p.A. (BIT:PRL) is Fulvio Citaredo, 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 Pierrel.

See our latest analysis for Pierrel

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

Our data indicates that Pierrel S.p.A. has a market capitalization of €41m, and total annual CEO compensation was reported as €527k for the year to December 2019. We note that's an increase of 87% above last year. Notably, the salary which is €321.4k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below €163m, reported a median total CEO compensation of €320k. This suggests that Fulvio Citaredo is paid more than the median for the industry.

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. According to our research, Pierrel has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Pierrel S.p.A.'s Growth

Pierrel S.p.A. has seen its earnings per share (EPS) increase by 63% a year over the past three years. It saw its revenue drop 9.2% over the last 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. 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 Pierrel S.p.A. Been A Good Investment?

With a three year total loss of 5.4% for the shareholders, Pierrel S.p.A. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Pierrel pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Pierrel that you should be aware of before investing.

Important note: Pierrel is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

If you decide to trade Pierrel, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.