What Can We Make Of Sonaecom SGPS' (ELI:SNC) CEO Compensation?

The CEO of Sonaecom, SGPS, S.A. (ELI:SNC) is Ângelo Gabriel dos Santos Paupério, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Sonaecom SGPS

How Does Total Compensation For Ângelo Gabriel dos Santos Paupério Compare With Other Companies In The Industry?

Our data indicates that Sonaecom, SGPS, S.A. has a market capitalization of €434m, and total annual CEO compensation was reported as €475k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at €184k.

On examining similar-sized companies in the industry with market capitalizations between €163m and €653m, we discovered that the median CEO total compensation of that group was €1.2m. This suggests that Ângelo Gabriel dos Santos Paupério is paid below the industry median.

Speaking on an industry level, nearly 28% of total compensation represents salary, while the remainder of 72% is other remuneration. It's interesting to note that Sonaecom SGPS pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Sonaecom, SGPS, S.A.'s Growth

Sonaecom, SGPS, S.A. has reduced its earnings per share by 30% a year over the last three years. It saw its revenue drop 2.8% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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

Since shareholders would have lost about 38% over three years, some Sonaecom, SGPS, S.A. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Sonaecom SGPS pays its CEO lower than the norm for similar-sized companies belonging to the same industry. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Sonaecom SGPS that investors should look into moving forward.

Switching gears from Sonaecom SGPS, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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