Medacta Group SA's (VTX:MOVE) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Medacta Group's Annual General Meeting to take place on 7th of May
• Total pay for CEO Francesco Siccardi includes €391.8k salary
• Total compensation is similar to the industry average
• Medacta Group's total shareholder return over the past three years was 28% while its EPS grew by 12% over the past three years

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CEO Francesco Siccardi has done a decent job of delivering relatively good performance at Medacta Group SA (VTX:MOVE) recently. As shareholders go into the upcoming AGM on 7th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Medacta Group

Comparing Medacta Group SA's CEO Compensation With The Industry

At the time of writing, our data shows that Medacta Group SA has a market capitalization of CHF2.7b, and reported total annual CEO compensation of €2.0m for the year to December 2024. That's a fairly small increase of 7.3% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €392k.

On comparing similar companies from the Swiss Medical Equipment industry with market caps ranging from CHF1.7b to CHF5.3b, we found that the median CEO total compensation was €2.0m. This suggests that Medacta Group remunerates its CEO largely in line with the industry average. Moreover, Francesco Siccardi also holds CHF528m worth of Medacta Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€392k	€396k	20%
Other	€1.6m	€1.5m	80%
Total Compensation	€2.0m	€1.9m	100%

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. Although there is a difference in how total compensation is set, Medacta Group more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Medacta Group SA's Growth Numbers

Medacta Group SA's earnings per share (EPS) grew 12% per year over the last three years. In the last year, its revenue is up 16%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Medacta Group SA Been A Good Investment?

Medacta Group SA has served shareholders reasonably well, with a total return of 28% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Medacta Group that you should be aware of before investing.

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.