What Did Be Think, Solve, Execute S.p.A.'s (BIT:BET) CEO Take Home Last Year?

Stefano Achermann is the CEO of Be Think, Solve, Execute S.p.A. (BIT:BET). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

View our latest analysis for Be Think Solve Execute

How Does Stefano Achermann's Compensation Compare With Similar Sized Companies?

According to our data, Be Think, Solve, Execute S.p.A. has a market capitalization of €116m, and paid its CEO total annual compensation worth €1.3m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €1.0m. We took a group of companies with market capitalizations below €180m, and calculated the median CEO total compensation to be €324k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 58% of total compensation represents salary and 42% is other remuneration. Be Think Solve Execute is paying a higher share of its remuneration through a salary in comparison to the overall industry.

As you can see, Stefano Achermann is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Be Think, Solve, Execute S.p.A. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. The graphic below shows how CEO compensation at Be Think Solve Execute has changed from year to year.

BIT:BET CEO Compensation March 29th 2020
BIT:BET CEO Compensation March 29th 2020

Is Be Think, Solve, Execute S.p.A. Growing?

Over the last three years Be Think, Solve, Execute S.p.A. has seen earnings per share (EPS) move in a positive direction by an average of 18% per year (using a line of best fit). It achieved revenue growth of 1.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.

Has Be Think, Solve, Execute S.p.A. Been A Good Investment?

Given the total loss of 13% over three years, many shareholders in Be Think, Solve, Execute S.p.A. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Be Think, Solve, Execute S.p.A., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Looking into other areas, we've picked out 4 warning signs for Be Think Solve Execute that investors should think about before committing capital to this stock.

If you want to buy a stock that is better than Be Think Solve Execute, 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.

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