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Should You Be Pleased About The CEO Pay At Mota-Engil, SGPS, S.A.'s (ELI:EGL)

Simply Wall St

Gonçalo Nuno de Andrade Moura Martins has been the CEO of Mota-Engil, SGPS, S.A. (ELI:EGL) since 2013. First, this article will compare CEO compensation with compensation at similar sized 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Mota-Engil SGPS

How Does Gonçalo Nuno de Andrade Moura Martins's Compensation Compare With Similar Sized Companies?

According to our data, Mota-Engil, SGPS, S.A. has a market capitalization of €419m, and paid its CEO total annual compensation worth €422k over the year to December 2018. Notably, the salary of €422k is the vast majority of the CEO compensation. We examined companies with market caps from €180m to €721m, and discovered that the median CEO total compensation of that group was €549k.

So Gonçalo Nuno de Andrade Moura Martins 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 a visual representation of the CEO compensation at Mota-Engil SGPS, below.

ENXTLS:EGL CEO Compensation, December 9th 2019

Is Mota-Engil, SGPS, S.A. Growing?

Mota-Engil, SGPS, S.A. has reduced its earnings per share by an average of 45% a year, over the last three years (measured with a line of best fit). Its revenue is up 9.2% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Mota-Engil, SGPS, S.A. Been A Good Investment?

Mota-Engil, SGPS, S.A. has served shareholders reasonably well, with a total return of 23% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Gonçalo Nuno de Andrade Moura Martins is paid around the same as most CEOs of similar size companies.

The company isn't growing earnings per share, and nor have the total returns inspired us. We're not saying the CEO pay is too generous, but one might argue that the company should improve returns to shareholders before increasing it. So you may want to check if insiders are buying Mota-Engil 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.

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.