Does Natuzzi S.p.A.'s (NYSE:NTZ) CEO Pay Compare Well With Peers?
In 1959 Pasquale Natuzzi was appointed CEO of Natuzzi S.p.A. (NYSE:NTZ). 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Natuzzi
How Does Pasquale Natuzzi's Compensation Compare With Similar Sized Companies?
According to our data, Natuzzi S.p.A. has a market capitalization of US$19m, and paid its CEO total annual compensation worth €120k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations below €182m, and calculated the median CEO total compensation to be €474k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Natuzzi has changed from year to year.
Is Natuzzi S.p.A. Growing?
Over the last three years Natuzzi S.p.A. has grown its earnings per share (EPS) by an average of 48% per year (using a line of best fit). In the last year, its revenue is down 8.8%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Natuzzi S.p.A. Been A Good Investment?
Since shareholders would have lost about 84% over three years, some Natuzzi S.p.A. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It appears that Natuzzi S.p.A. remunerates its CEO below most similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Pasquale Natuzzi receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Whatever your view on compensation, you might want to check if insiders are buying or selling Natuzzi shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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