In 2010 Pedro de Castro Soares dos Santos was appointed CEO of Jerónimo Martins SGPS SA (ELI:JMT). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Pedro de Castro Soares dos Santos’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Jerónimo Martins SGPS SA has a market cap of €7.4b, and is paying total annual CEO compensation of €2m. That’s a notable increase of 35% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.5b to €10.5b. The median total CEO compensation was €2m.
So Pedro de Castro Soares dos Santos is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Jerónimo Martins SGPS has changed from year to year.
Is Jerónimo Martins SGPS SA Growing?
Over the last three years Jerónimo Martins SGPS SA has grown its earnings per share (EPS) by an average of 8.6% per year. Its revenue is up 9.9% over last year.
I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Jerónimo Martins SGPS SA Been A Good Investment?
With a total shareholder return of 4.3% over three years, Jerónimo Martins SGPS SA has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Pedro de Castro Soares dos Santos is paid around the same as most CEOs of similar size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. So you may want to check if insiders are buying Jerónimo Martins SGPS SA shares with their own money (free access).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.