Bernardo Velázquez Herreros became the CEO of Acerinox SA (BME:ACX) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Bernardo Velázquez Herreros’s Compensation Compare With Similar Sized Companies?
Our data indicates that Acerinox SA is worth €2.5b, and total annual CEO compensation is €1.1m. (This number is for the twelve months until 2015). We think total compensation is more important but we note that the CEO salary is lower, at €447k. We examined companies with market caps from €1.8b to €5.6b, and discovered that the median CEO compensation of that group was €1.1m.
So Bernardo Velázquez Herreros is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Acerinox has changed from year to year.
Is Acerinox SA Growing?
Acerinox SA has increased its earnings per share (EPS) by an average of 70% a year, over the last three years It achieved revenue growth of 9.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Acerinox SA Been A Good Investment?
With a total shareholder return of 4.1% over three years, Acerinox SA has done okay by shareholders. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Bernardo Velázquez Herreros is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Acerinox shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.