In This Article:
Patrizio Bertelli has been the CEO of Prada SpA (HKG:1913) since 2012. This analysis aims first to contrast CEO compensation with other large companies. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Prada
How Does Patrizio Bertelli’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Prada SpA has a market cap of HK$79.1b, and is paying total annual CEO compensation of €13m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations over €7.0b and the median CEO compensation was €582k.
It would therefore appear that Prada SpA pays Patrizio Bertelli more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Prada has changed over time.
Is Prada SpA Growing?
Prada SpA has reduced its earnings per share by an average of 22% a year, over the last three years. In the last year, its revenue is down -7.6%.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Prada SpA Been A Good Investment?
Since shareholders would have lost about 0.9% over three years, some Prada SpA shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared total CEO remuneration at Prada SpA with the amount paid at other large companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Prada SpA (free visualization of insider trades).