The CEO of Cofina, SGPS, S.A. (ELI:CFN) is Paulo dos Santos Fernandes, 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 Cofina SGPS.
See our latest analysis for Cofina SGPS
How Does Total Compensation For Paulo dos Santos Fernandes Compare With Other Companies In The Industry?
Our data indicates that Cofina, SGPS, S.A. has a market capitalization of €25m, and total annual CEO compensation was reported as €80k for the year to December 2019. That's a notable increase of 100% on last year. Notably, the salary of €80k is the entirety of the CEO compensation.
In comparison with other companies in the industry with market capitalizations under €165m, the reported median total CEO compensation was €294k. This suggests that Paulo dos Santos Fernandes is paid below the industry median.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €80k | €40k | 100% |
| Other | - | - | - |
| Total Compensation | €80k | €40k | 100% |
Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. Speaking on a company level, Cofina SGPS prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Cofina, SGPS, S.A.'s Growth Numbers
Cofina, SGPS, S.A. has seen its earnings per share (EPS) increase by 3.9% a year over the past three years. It saw its revenue drop 9.4% over the last year.
We would prefer it if there was revenue growth, but the modest improvement in EPS is good. 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 Cofina, SGPS, S.A. Been A Good Investment?
Since shareholders would have lost about 48% over three years, some Cofina, SGPS, S.A. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Cofina SGPS rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Cofina SGPS pays its CEO lower than the norm for similar-sized companies belonging to the same industry. But then, EPS growth is lacking and so are the returns to shareholders. We're not critical of the remuneration Paulo receives, but it would be good to see improved returns to shareholders before compensation grows too much.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Cofina SGPS (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Important note: Cofina 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.
If you’re looking to trade Cofina SGPS, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
If you're looking to trade Cofina SGPS, open an account with the lowest-cost platform trusted by professionals, Interactive Brokers.
With clients in over 200 countries and territories, and access to 160 markets, IBKR lets you trade stocks, options, futures, forex, bonds and funds from a single integrated account.
Enjoy no hidden fees, no account minimums, and FX conversion rates as low as 0.03%, far better than what most brokers offer.
Sponsored ContentNew: AI Stock Screener & Alerts
Our new AI Stock Screener scans the market every day to uncover opportunities.
• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies
Or build your own from over 50 metrics.
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@simplywallst.com.
About ENXTLS:CFN
Cofina SGPS
Through its subsidiaries, engages in the publication of newspapers and magazines in Portugal.
Flawless balance sheet medium-low.
