In 2015 Carlos Nuno Gomes da Silva was appointed CEO of Galp Energia, SGPS, S.A. (ELI:GALP). First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Carlos Nuno Gomes da Silva's Compensation Compare With Similar Sized Companies?
Our data indicates that Galp Energia, SGPS, S.A. is worth €12b, and total annual CEO compensation was reported as €1.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €980k. We took a group of companies with market capitalizations over €7.4b, and calculated the median CEO total compensation to be €3.3m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Most shareholders would consider it a positive that Carlos Nuno Gomes da Silva takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Galp Energia SGPS, below.
Is Galp Energia, SGPS, S.A. Growing?
On average over the last three years, Galp Energia, SGPS, S.A. has grown earnings per share (EPS) by 11% each year (using a line of best fit). In the last year, its revenue is down 3.9%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Galp Energia, SGPS, S.A. Been A Good Investment?
Galp Energia, SGPS, S.A. has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Galp Energia, SGPS, S.A. is currently paying its CEO below what is normal for large companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Carlos Nuno Gomes da Silva is overcompensated. Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. So you may want to check if insiders are buying Galp Energia SGPS shares with their own money (free access).
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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