Sonae, SGPS, S.A.'s (ELI:SON) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Sonae SGPS will host its Annual General Meeting on 28th of April
• Salary of €514.8k is part of CEO Maria Claudia de Azevedo's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Sonae SGPS' EPS grew by 23% and over the past three years, the total shareholder return was 83%

The performance at Sonae, SGPS, S.A. (ELI:SON) has been quite strong recently and CEO Maria Claudia de Azevedo has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 28th of April. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Sonae SGPS

How Does Total Compensation For Maria Claudia de Azevedo Compare With Other Companies In The Industry?

Our data indicates that Sonae, SGPS, S.A. has a market capitalization of €2.0b, and total annual CEO compensation was reported as €1.6m for the year to December 2022. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €515k.

In comparison with other companies in the Portugal Consumer Retailing industry with market capitalizations ranging from €911m to €2.9b, the reported median CEO total compensation was €1.6m. This suggests that Sonae SGPS remunerates its CEO largely in line with the industry average. Furthermore, Maria Claudia de Azevedo directly owns €1.1m worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	€515k	€506k	32%
Other	€1.1m	€1.1m	68%
Total Compensation	€1.6m	€1.6m	100%

On an industry level, around 37% of total compensation represents salary and 63% is other remuneration. Sonae SGPS pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Sonae, SGPS, S.A.'s Growth Numbers

Sonae, SGPS, S.A.'s earnings per share (EPS) grew 23% per year over the last three years. It achieved revenue growth of 12% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sonae, SGPS, S.A. Been A Good Investment?

Most shareholders would probably be pleased with Sonae, SGPS, S.A. for providing a total return of 83% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 1 warning sign for Sonae SGPS 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.