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Guido Ferretti became the CEO of Caleffi S.p.A. (BIT:CLF) in 2003. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 S.p.A. has a market cap of €23m, and is paying total annual CEO compensation of €289k. (This is based on the year to 2016). While we always look at total compensation first, we note that the salary component is less, at €245k. We took a group of companies with market capitalizations below €176m, and calculated the median CEO compensation to be €281k.
That means Guido Ferretti receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Caleffi has changed over time.
Is Caleffi S.p.A. Growing?
On average over the last three years, Caleffi S.p.A. has grown earnings per share (EPS) by 18% each year (using a line of best fit). It saw its revenue drop -12% over the last year.
This demonstrates that the company has been improving recently. A good result. 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 S.p.A. Been A Good Investment?
Boasting a total shareholder return of 54% over three years, Caleffi S.p.A. has done well by shareholders. 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 the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Caleffi.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 email@example.com.