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Is I.CERAM SA's (EPA:ALICR) CEO Pay Fair?

Simply Wall St

André Kérisit is the CEO of I.CERAM SA (EPA:ALICR). 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 method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for I.CERAM

How Does André Kérisit's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that I.CERAM SA has a market cap of €9.4m, and reported total annual CEO compensation of €102k for the year to December 2018. Notably, the salary of €102k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below €179m. The median CEO total compensation in that group is €157k.

A first glance this seems like a real positive for shareholders, since André Kérisit is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at I.CERAM, below.

ENXTPA:ALICR CEO Compensation, November 2nd 2019

Is I.CERAM SA Growing?

I.CERAM SA has reduced its earnings per share by an average of 22% a year, over the last three years (measured with a line of best fit). In the last year, its revenue changed by just 0.7%.

Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has I.CERAM SA Been A Good Investment?

With a three year total loss of 75%, I.CERAM SA would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It appears that I.CERAM SA remunerates its CEO below most similar sized companies.

André Kérisit is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Shareholders may want to check for free if I.CERAM insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.