Here's Why Shareholders Should Examine Esprinet S.p.A.'s (BIT:PRT) CEO Compensation Package More Closely

Key Insights

• Esprinet to hold its Annual General Meeting on 24th of April
• Salary of €450.0k is part of CEO Alessandro Cattani's total remuneration
• The overall pay is comparable to the industry average
• Esprinet's EPS declined by 41% over the past three years while total shareholder loss over the past three years was 56%

Shareholders will probably not be too impressed with the underwhelming results at Esprinet S.p.A. (BIT:PRT) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 24th of April. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Esprinet

Comparing Esprinet S.p.A.'s CEO Compensation With The Industry

According to our data, Esprinet S.p.A. has a market capitalization of €249m, and paid its CEO total annual compensation worth €592k over the year to December 2023. Notably, that's a decrease of 19% over the year before. Notably, the salary which is €450.0k, represents most of the total compensation being paid.

In comparison with other companies in the Italian Electronic industry with market capitalizations ranging from €94m to €375m, the reported median CEO total compensation was €522k. So it looks like Esprinet compensates Alessandro Cattani in line with the median for the industry. Moreover, Alessandro Cattani also holds €396k worth of Esprinet stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€450k	€450k	76%
Other	€142k	€284k	24%
Total Compensation	€592k	€734k	100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. It's interesting to note that Esprinet pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Esprinet S.p.A.'s Growth

Over the last three years, Esprinet S.p.A. has shrunk its earnings per share by 41% per year. Its revenue is down 15% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Esprinet S.p.A. Been A Good Investment?

Few Esprinet S.p.A. shareholders would feel satisfied with the return of -56% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Esprinet (free visualization of insider trades).

Important note: Esprinet is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.