Shareholders Will Probably Hold Off On Increasing Fluidra, S.A.'s (BME:FDR) CEO Compensation For The Time Being

Key Insights

• Fluidra will host its Annual General Meeting on 8th of May
• CEO Eloi Planes Corts' total compensation includes salary of €500.0k
• The total compensation is similar to the average for the industry
• Fluidra's EPS grew by 6.5% over the past three years while total shareholder loss over the past three years was 27%

In the past three years, the share price of Fluidra, S.A. (BME:FDR) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 8th of May. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Fluidra

Comparing Fluidra, S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Fluidra, S.A. has a market capitalization of €3.8b, and reported total annual CEO compensation of €1.1m for the year to December 2023. We note that's an increase of 62% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €500k.

On comparing similar companies from the Spanish Machinery industry with market caps ranging from €1.9b to €6.0b, we found that the median CEO total compensation was €1.6m. So it looks like Fluidra compensates Eloi Planes Corts in line with the median for the industry. Furthermore, Eloi Planes Corts directly owns €6.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	€500k	€390k	44%
Other	€637k	€311k	56%
Total Compensation	€1.1m	€701k	100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. Fluidra sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Fluidra, S.A.'s Growth

Over the past three years, Fluidra, S.A. has seen its earnings per share (EPS) grow by 6.5% per year. In the last year, its revenue is down 14%.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Fluidra, S.A. Been A Good Investment?

Given the total shareholder loss of 27% over three years, many shareholders in Fluidra, S.A. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Fluidra that you should be aware of before investing.

Important note: Fluidra 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.