Yahoo Finance Does Brembo SpA’s (BIT:BRE) CEO Pay Compare Well With Peers?
Andrea Marescotti has been the CEO of Brembo SpA (BIT:BRE) since 2011. 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. 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.
See our latest analysis for Brembo
How Does Andrea Marescotti’s Compensation Compare With Similar Sized Companies?
According to our data, Brembo SpA has a market capitalization of €3.1b, and pays its CEO total annual compensation worth €4m. We note that’s an increase of 149% above last year. We examined companies with market caps from €1.8b to €5.6b, and discovered that the median CEO compensation of that group was €1m.
As you can see, Andrea Marescotti is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Brembo 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 Brembo has changed from year to year.
Is Brembo SpA Growing?
On average over the last three years, Brembo SpA has grown earnings per share (EPS) by 13% each year. In the last year, its revenue is up 7.5%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Brembo SpA Been A Good Investment?
Brembo SpA has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. 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…
We compared the total CEO remuneration paid by Brembo SpA, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Brembo SpA.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.
