Stefano Venier has been the CEO of Hera S.p.A. (BIT:HER) since 2014. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Stefano Venier's Compensation Compare With Similar Sized Companies?
According to our data, Hera S.p.A. has a market capitalization of €5.7b, and paid its CEO total annual compensation worth €578k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €382k. We examined companies with market caps from €3.6b to €11b, and discovered that the median CEO total compensation of that group was €2.3m.
Most shareholders would consider it a positive that Stefano Venier takes less total compensation than the CEOs of most similar size 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, below, how CEO compensation at Hera has changed over time.
Is Hera S.p.A. Growing?
On average over the last three years, Hera S.p.A. has grown earnings per share (EPS) by 13% each year (using a line of best fit). In the last year, its revenue is up 15%.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Hera S.p.A. Been A Good Investment?
Boasting a total shareholder return of 94% over three years, Hera S.p.A. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Hera S.p.A. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Stefano Venier deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Hera 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 firstname.lastname@example.org. 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.