Is Impresa - Sociedade Gestora de Participações Sociais, S.A. (ELI:IPR) Excessively Paying Its CEO?

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Francisco Pedro Presas de Balsemão became the CEO of Impresa - Sociedade Gestora de Participações Sociais, S.A. (ELI:IPR) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Impresa - Sociedade Gestora de Participações Sociais

How Does Francisco Pedro Presas de Balsemão's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Impresa - Sociedade Gestora de Participações Sociais, S.A. has a market cap of €40m, and is paying total annual CEO compensation of €240k. (This figure is for the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth €280k. We took a group of companies with market capitalizations below €177m, and calculated the median CEO total compensation to be €58k.

Thus we can conclude that Francisco Pedro Presas de Balsemão receives more in total compensation than the median of a group of companies in the same market, and of similar size to Impresa - Sociedade Gestora de Participações Sociais, S.A.. 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 a visual representation of the CEO compensation at Impresa - Sociedade Gestora de Participações Sociais, below.

ENXTLS:IPR CEO Compensation, June 24th 2019
ENXTLS:IPR CEO Compensation, June 24th 2019

Is Impresa - Sociedade Gestora de Participações Sociais, S.A. Growing?

Impresa - Sociedade Gestora de Participações Sociais, S.A. has reduced its earnings per share by an average of 64% a year, over the last three years (measured with a line of best fit). Its revenue is down -11% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has Impresa - Sociedade Gestora de Participações Sociais, S.A. Been A Good Investment?

Impresa - Sociedade Gestora de Participações Sociais, S.A. has not done too badly by shareholders, with a total return of 3.5%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.