It's Unlikely That Semapa - Sociedade de Investimento e Gestão, SGPS, S.A.'s (ELI:SEM) CEO Will See A Huge Pay Rise This Year

Key Insights

• Semapa - Sociedade de Investimento e Gestão SGPS to hold its Annual General Meeting on 29th of May
• Total pay for CEO Ricardo dos Santos Pacheco Pires includes €672.8k salary
• The total compensation is 151% higher than the average for the industry
• Semapa - Sociedade de Investimento e Gestão SGPS' total shareholder return over the past three years was 49% while its EPS grew by 1.4% over the past three years

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

CEO Ricardo dos Santos Pacheco Pires has done a decent job of delivering relatively good performance at Semapa - Sociedade de Investimento e Gestão, SGPS, S.A. (ELI:SEM) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 29th of May. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Semapa - Sociedade de Investimento e Gestão SGPS

Comparing Semapa - Sociedade de Investimento e Gestão, SGPS, S.A.'s CEO Compensation With The Industry

According to our data, Semapa - Sociedade de Investimento e Gestão, SGPS, S.A. has a market capitalization of €1.4b, and paid its CEO total annual compensation worth €1.2m over the year to December 2024. Notably, that's a decrease of 17% over the year before. We note that the salary of €672.8k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the Portugal Forestry industry with market caps ranging from €880m to €2.8b, we found that the median CEO total compensation was €496k. Hence, we can conclude that Ricardo dos Santos Pacheco Pires is remunerated higher than the industry median.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Semapa - Sociedade de Investimento e Gestão SGPS pays a modest slice of remuneration through salary, as compared to the broader industry. 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.

A Look at Semapa - Sociedade de Investimento e Gestão, SGPS, S.A.'s Growth Numbers

Semapa - Sociedade de Investimento e Gestão, SGPS, S.A.'s earnings per share (EPS) grew 1.4% per year over the last three years. It achieved revenue growth of 4.5% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Semapa - Sociedade de Investimento e Gestão, SGPS, S.A. Been A Good Investment?

Most shareholders would probably be pleased with Semapa - Sociedade de Investimento e Gestão, SGPS, S.A. for providing a total return of 49% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Semapa - Sociedade de Investimento e Gestão SGPS that investors should think about before committing capital to this stock.

Important note: Semapa - Sociedade de Investimento e Gestão SGPS 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.

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

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.