In 2015 Carlos Nuno da Silva was appointed CEO of Galp Energia SGPS SA (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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Carlos Nuno da Silva’s Compensation Compare With Similar Sized Companies?
Our data indicates that Galp Energia SGPS SA is worth €12b, and total annual CEO compensation is €1.7m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at €980k. When we examined a group of companies with market caps over €7.1b, we found that their median CEO compensation was €3.5m.
A first glance this seems like a real positive for shareholders, since Carlos Nuno da Silva is paid less than the average compensation paid by other large companies. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Galp Energia SGPS has changed from year to year.
Is Galp Energia SGPS SA Growing?
Over the last three years Galp Energia SGPS SA has grown its earnings per share (EPS) by an average of 85% per year. It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Galp Energia SGPS SA Been A Good Investment?
Boasting a total shareholder return of 63% over three years, Galp Energia SGPS SA has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Galp Energia SGPS SA 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. And given most shareholders are probably very happy with recent returns, you might even think that Carlos Nuno da Silva deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Galp Energia SGPS (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.