Guido Ferretti became the CEO of Caleffi SpA (BIT:CLF) in 2003. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Guido Ferretti’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Caleffi SpA has a market cap of €23m, and is paying total annual CEO compensation of €289k. We note that’s an increase of 18% above last year. We looked at a group of companies with market capitalizations under €173m, and the median CEO compensation was €320k.
So Guido Ferretti receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Caleffi has changed from year to year.
Is Caleffi SpA Growing?
Caleffi SpA has increased its earnings per share (EPS) by an average of 18% a year, over the last three years It saw its revenue drop -12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Caleffi SpA Been A Good Investment?
Most shareholders would probably be pleased with Caleffi SpA for providing a total return of 52% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Guido Ferretti is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Caleffi SpA.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.