In 2014 José Damián Bogas Gálvez was appointed CEO of Endesa, S.A. (BME:ELE). First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does José Damián Bogas Gálvez's Compensation Compare With Similar Sized Companies?
According to our data, Endesa, S.A. has a market capitalization of €25b, and pays its CEO total annual compensation worth €2.0m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €740k. When we examined a group of companies with market caps over €7.2b, we found that their median CEO total compensation was €2.7m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So José Damián Bogas Gálvez is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Endesa has changed over time.
Is Endesa, S.A. Growing?
Endesa, S.A. has increased its earnings per share (EPS) by an average of 8.7% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.8%.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has Endesa, S.A. Been A Good Investment?
Most shareholders would probably be pleased with Endesa, S.A. for providing a total return of 49% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for José Damián Bogas Gálvez is close enough to the median pay for a CEO of a large company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if Endesa insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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