We Discuss Why Medacta Group SA's (VTX:MOVE) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

Key Insights

• Medacta Group will host its Annual General Meeting on 7th of May
• Total pay for CEO Francesco Siccardi includes €396.2k salary
• The overall pay is comparable to the industry average
• Medacta Group's total shareholder return over the past three years was 0.6% while its EPS grew by 8.6% over the past three years

CEO Francesco Siccardi has done a decent job of delivering relatively good performance at Medacta Group SA (VTX:MOVE) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 7th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Medacta Group

How Does Total Compensation For Francesco Siccardi Compare With Other Companies In The Industry?

At the time of writing, our data shows that Medacta Group SA has a market capitalization of CHF2.2b, and reported total annual CEO compensation of €1.9m for the year to December 2023. We note that's an increase of 11% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €396k.

On comparing similar companies from the Swiss Medical Equipment industry with market caps ranging from CHF1.8b to CHF5.9b, we found that the median CEO total compensation was €2.3m. This suggests that Medacta Group remunerates its CEO largely in line with the industry average. What's more, Francesco Siccardi holds CHF442m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	€396k	€372k	21%
Other	€1.5m	€1.3m	79%
Total Compensation	€1.9m	€1.7m	100%

Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. Medacta Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Medacta Group SA's Growth Numbers

Medacta Group SA has seen its earnings per share (EPS) increase by 8.6% a year over the past three years. In the last year, its revenue is up 17%.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. 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 generated a total shareholder return of 0.6% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Medacta Group that you should be aware of before investing.

Important note: Medacta Group 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.