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Is Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A.'s (BME:BME) CEO Paid Enough Relative To Peers?

Simply Wall St

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Antonio Jose Zoido Martínez is the CEO of Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (BME:BME). 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros

How Does Antonio Jose Zoido Martínez's Compensation Compare With Similar Sized Companies?

Our data indicates that Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. is worth €2.1b, and total annual CEO compensation is €1.2m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at €732k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €892m to €2.9b. The median total CEO compensation was €441k.

As you can see, Antonio Jose Zoido Martínez is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros, below.

BME:BME CEO Compensation, April 2nd 2019

Is Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. Growing?

On average over the last three years, Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. has shrunk earnings per share by 7.1% each year (measured with a line of best fit). It saw its revenue drop -3.7% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. Been A Good Investment?

Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. has not done too badly by shareholders, with a total return of 4.7%, over three years. 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.

In Summary...

We examined the amount Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Earnings per share have not grown in three years, and the revenue growth fails to impress us.

And while shareholder returns have been respectable, they have hardly been superb. So we doubt many shareholders would consider the CEO pay to be particularly modest! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros.

If you want to buy a stock that is better than Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.