Yahoo Finance Is Amplifon SpA’s (BIT:AMP) CEO Being Overpaid?
Enrico Vita became the CEO of Amplifon SpA (BIT:AMP) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Amplifon
How Does Enrico Vita’s Compensation Compare With Similar Sized Companies?
Our data indicates that Amplifon SpA is worth €3.2b, and total annual CEO compensation is €2.4m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €1.1m. We looked at a group of companies with market capitalizations from €1.8b to €5.6b, and the median CEO compensation was €1.3m.
As you can see, Enrico Vita is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Amplifon SpA is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Amplifon has changed from year to year.
Is Amplifon SpA Growing?
On average over the last three years, Amplifon SpA has grown earnings per share (EPS) by 31% each year (using a line of best fit). Its revenue is up 7.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Amplifon SpA Been A Good Investment?
Boasting a total shareholder return of 110% over three years, Amplifon SpA 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.
In Summary…
We examined the amount Amplifon SpA pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Amplifon (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past 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 editorial-team@simplywallst.com.
