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Is Notorious Pictures S.p.A.'s (BIT:NPI) CEO Overpaid Relative To Its Peers?

Simply Wall St

The CEO of Notorious Pictures S.p.A. (BIT:NPI) is Guglielmo Marchetti. First, this article will compare CEO compensation with compensation at similar sized 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Notorious Pictures

How Does Guglielmo Marchetti's Compensation Compare With Similar Sized Companies?

According to our data, Notorious Pictures S.p.A. has a market capitalization of €53m, and paid its CEO total annual compensation worth €331k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €174k. We looked at a group of companies with market capitalizations under €179m, and the median CEO total compensation was €331k.

So Guglielmo Marchetti receives a similar amount to the median CEO pay, amongst 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.

The graphic below shows how CEO compensation at Notorious Pictures has changed from year to year.

BIT:NPI CEO Compensation, January 4th 2020

Is Notorious Pictures S.p.A. Growing?

Over the last three years, Notorious Pictures S.p.A. has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. Its revenue is down 3.2% over last year.

In the last three years the company has failed to grow earnings per share. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Notorious Pictures S.p.A. Been A Good Investment?

Most shareholders would probably be pleased with Notorious Pictures S.p.A. for providing a total return of 171% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Guglielmo Marchetti is paid around the same as most CEOs of similar size companies.

We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Notorious Pictures (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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.