In 2012 Francisco José Queiroz de de Lacerda was appointed CEO of CTT – Correios De Portugal SA (ELI:CTT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Francisco José Queiroz de de Lacerda’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CTT – Correios De Portugal SA has a market cap of €480m, and is paying total annual CEO compensation of €944k. We note that’s an increase of 110% above last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €176m to €703m. The median total CEO compensation was €582k.
It would therefore appear that CTT – Correios De Portugal SA pays Francisco José Queiroz de de Lacerda more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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, below, how CEO compensation at CTT – Correios De Portugal has changed over time.
Is CTT – Correios De Portugal SA Growing?
Over the last three years CTT – Correios De Portugal SA has shrunk its earnings per share by an average of 40% per year. It achieved revenue growth of 2.0% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has CTT – Correios De Portugal SA Been A Good Investment?
With a three year total loss of 59%, CTT – Correios De Portugal SA would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at CTT – Correios De Portugal SA with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. This contrasts with the growth in CEO remuneration, year on year. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if CTT – Correios De Portugal SA insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.