We Think Shareholders Will Probably Be Generous With LU-VE S.p.A.'s (BIT:LUVE) CEO Compensation

Key Insights

• LU-VE to hold its Annual General Meeting on 18th of April
• Salary of €525.0k is part of CEO Matteo Liberali's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, LU-VE's EPS grew by 13% and over the past three years, the total shareholder return was 45%

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It would be hard to discount the role that CEO Matteo Liberali has played in delivering the impressive results at LU-VE S.p.A. (BIT:LUVE) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 18th of April. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for LU-VE

Comparing LU-VE S.p.A.'s CEO Compensation With The Industry

According to our data, LU-VE S.p.A. has a market capitalization of €614m, and paid its CEO total annual compensation worth €1.3m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at €525k.

On examining similar-sized companies in the Italian Building industry with market capitalizations between €353m and €1.4b, we discovered that the median CEO total compensation of that group was €1.2m. From this we gather that Matteo Liberali is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	€525k	€525k	41%
Other	€748k	€714k	59%
Total Compensation	€1.3m	€1.2m	100%

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. LU-VE sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at LU-VE S.p.A.'s Growth Numbers

LU-VE S.p.A.'s earnings per share (EPS) grew 13% per year over the last three years. It saw its revenue drop 4.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has LU-VE S.p.A. Been A Good Investment?

We think that the total shareholder return of 45%, over three years, would leave most LU-VE S.p.A. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at LU-VE.

Important note: LU-VE 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.