Is Mediaset España Comunicación, S.A.'s (BME:TL5) CEO Pay Fair?

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The CEO of Mediaset España Comunicación, S.A. (BME:TL5) is Paolo Vasile. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Mediaset España Comunicación

How Does Paolo Vasile's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Mediaset España Comunicación, S.A. has a market cap of €2.2b, and is paying total annual CEO compensation of €1.7m. (This is based on the year to December 2018). That's less than last year. While we always look at total compensation first, we note that the salary component is less, at €930k. We looked at a group of companies with market capitalizations from €1.8b to €5.7b, and the median CEO total compensation was €15k.

As you can see, Paolo Vasile is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Mediaset España Comunicación, S.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 Mediaset España Comunicación has changed from year to year.

BME:TL5 CEO Compensation, April 29th 2019
BME:TL5 CEO Compensation, April 29th 2019

Is Mediaset España Comunicación, S.A. Growing?

Mediaset España Comunicación, S.A. has increased its earnings per share (EPS) by an average of 5.6% a year, over the last three years (using a line of best fit). Its revenue is down -1.1% over last year.

I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has Mediaset España Comunicación, S.A. Been A Good Investment?

Given the total loss of 33% over three years, many shareholders in Mediaset España Comunicación, S.A. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at Mediaset España Comunicación, S.A. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.