Is Infotel SA's (EPA:INF) CEO Paid At A Competitive Rate?
In 1979 Bernard Connes-Lafforet was appointed CEO of Infotel SA (EPA:INF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Infotel
How Does Bernard Connes-Lafforet's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Infotel SA has a market cap of €266m, and reported total annual CEO compensation of €216k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth €216k. We examined companies with market caps from €90m to €361m, and discovered that the median CEO total compensation of that group was €371k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Infotel has changed from year to year.
Is Infotel SA Growing?
Infotel SA has increased its earnings per share (EPS) by an average of 1.9% a year, over the last three years (using a line of best fit). It achieved revenue growth of 8.0% over the last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has Infotel SA Been A Good Investment?
Infotel SA has generated a total shareholder return of 8.1% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
It looks like Infotel SA pays its CEO less than similar sized companies.
Bernard Connes-Lafforet is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. Shareholders may want to check for free if Infotel insiders are buying or selling shares.
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.
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