Yahoo Finance Should You Worry About Exor N.V.'s (BIT:EXO) CEO Pay?
In 2011 John Elkann was appointed CEO of Exor N.V. (BIT:EXO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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.
View our latest analysis for Exor
How Does John Elkann's Compensation Compare With Similar Sized Companies?
According to our data, Exor N.V. has a market capitalization of €16b, and paid its CEO total annual compensation worth €5.4m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €4.5m. When we examined a group of companies with market caps over €7.2b, we found that their median CEO total compensation was €3.3m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
Thus we can conclude that John Elkann receives more in total compensation than the median of a group of large companies in the same market as Exor N.V.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Exor has changed over time.
Is Exor N.V. Growing?
On average over the last three years, Exor N.V. has shrunk earnings per share by 19% each year (measured with a line of best fit). It achieved revenue growth of 5.7% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Exor N.V. Been A Good Investment?
Boasting a total shareholder return of 75% over three years, Exor N.V. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We examined the amount Exor N.V. pays its CEO, and compared it to the amount paid by other large companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. On the other hand, returns have been good, so the company is doing something right. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Exor.
If you want to buy a stock that is better than Exor, this free list of high return, low debt companies is a great place to look.
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.
