We Think Shareholders Will Probably Be Generous With TXT e-solutions S.p.A.'s (BIT:TXT) CEO Compensation

Key Insights

• TXT e-solutions to hold its Annual General Meeting on 24th of April
• Salary of €233.3k is part of CEO Daniele Misani's total remuneration
• The overall pay is comparable to the industry average
• TXT e-solutions' total shareholder return over the past three years was 211% while its EPS grew by 51% over the past three years

It would be hard to discount the role that CEO Daniele Misani has played in delivering the impressive results at TXT e-solutions S.p.A. (BIT:TXT) recently. Coming up to the next AGM on 24th of April, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for TXT e-solutions

How Does Total Compensation For Daniele Misani Compare With Other Companies In The Industry?

Our data indicates that TXT e-solutions S.p.A. has a market capitalization of €259m, and total annual CEO compensation was reported as €432k for the year to December 2023. Notably, that's an increase of 19% over the year before. Notably, the salary which is €233.3k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Italian Software industry with market capitalizations ranging between €94m and €375m had a median total CEO compensation of €479k. From this we gather that Daniele Misani is paid around the median for CEOs in the industry. Moreover, Daniele Misani also holds €694k worth of TXT e-solutions stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€233k	€180k	54%
Other	€198k	€183k	46%
Total Compensation	€432k	€363k	100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. TXT e-solutions pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

TXT e-solutions S.p.A.'s Growth

Over the past three years, TXT e-solutions S.p.A. has seen its earnings per share (EPS) grow by 51% per year. Its revenue is up 49% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has TXT e-solutions S.p.A. Been A Good Investment?

Boasting a total shareholder return of 211% over three years, TXT e-solutions S.p.A. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

Shareholders may want to check for free if TXT e-solutions insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.