Pasquale Natuzzi became the CEO of Natuzzi S.p.A. (NYSE:NTZ) in 1959. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Natuzzi
How Does Pasquale Natuzzi's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Natuzzi S.p.A. has a market cap of US$7.9m, and reported total annual CEO compensation of €120k for the year to December 2018. We looked at a group of companies with market capitalizations under €182m, and the median CEO total compensation was €541k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 27% of total compensation represents salary, while the remainder of 73% is other remuneration. Speaking on a company level, Natuzzi does not pay a salary to Pasquale Natuzzi, preferring to remunerate the executive through non-salary compensation.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at Natuzzi has changed from year to year.
Is Natuzzi S.p.A. Growing?
Over the last three years Natuzzi S.p.A. has seen earnings per share (EPS) move in a positive direction by an average of 24% per year (using a line of best fit). It saw its revenue drop 9.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Natuzzi S.p.A. Been A Good Investment?
With a three year total loss of 94%, Natuzzi S.p.A. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It appears that Natuzzi S.p.A. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we would not say that Pasquale Natuzzi is generously paid, it would be good to see an improvement in business performance before too an increase in pay. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shifting gears from CEO pay for a second, we've spotted 2 warning signs for Natuzzi you should be aware of, and 1 of them shouldn't be ignored.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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