Alessandro Vandelli has been the CEO of BPER Banca S.p.A. (BIT:BPE) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alessandro Vandelli’s Compensation Compare With Similar Sized Companies?
According to our data, BPER Banca S.p.A. has a market capitalization of €1.6b, and pays its CEO total annual compensation worth €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 €907k. When we examined a selection of companies with market caps ranging from €876m to €2.8b, we found the median CEO compensation was €734k.
Thus we can conclude that Alessandro Vandelli receives more in total compensation than the median of a group of companies in the same market, and of similar size to BPER Banca S.p.A.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at BPER Banca, below.
Is BPER Banca S.p.A. Growing?
BPER Banca S.p.A. has increased its earnings per share (EPS) by an average of 38% a year, over the last three years Its revenue is up 53% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has BPER Banca S.p.A. Been A Good Investment?
Given the total loss of 51% over three years, many shareholders in BPER Banca S.p.A. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared total CEO remuneration at BPER Banca S.p.A. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if BPER Banca insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 firstname.lastname@example.org.