Shareholders May Not Be So Generous With Orsero S.p.A.'s (BIT:ORS) CEO Compensation And Here's Why

Key Insights

• Orsero will host its Annual General Meeting on 29th of April
• CEO Raffaella Orsero's total compensation includes salary of €448.3k
• Total compensation is 49% above industry average
• Orsero's total shareholder return over the past three years was 87% while its EPS grew by 58% over the past three years

CEO Raffaella Orsero has done a decent job of delivering relatively good performance at Orsero S.p.A. (BIT:ORS) recently. As shareholders go into the upcoming AGM on 29th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Orsero

How Does Total Compensation For Raffaella Orsero Compare With Other Companies In The Industry?

At the time of writing, our data shows that Orsero S.p.A. has a market capitalization of €232m, and reported total annual CEO compensation of €693k for the year to December 2023. That's a notable decrease of 14% on last year. In particular, the salary of €448.3k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Italy Consumer Retailing industry with market caps ranging from €94m to €376m, we found that the median CEO total compensation was €466k. Hence, we can conclude that Raffaella Orsero is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	€448k	€390k	65%
Other	€245k	€416k	35%
Total Compensation	€693k	€806k	100%

Talking in terms of the industry, salary represented approximately 41% of total compensation out of all the companies we analyzed, while other remuneration made up 59% of the pie. According to our research, Orsero has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Orsero S.p.A.'s Growth Numbers

Orsero S.p.A. has seen its earnings per share (EPS) increase by 58% a year over the past three years. Its revenue is up 29% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Orsero S.p.A. Been A Good Investment?

Most shareholders would probably be pleased with Orsero S.p.A. for providing a total return of 87% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Orsero you should be aware of, and 1 of them is potentially serious.

Switching gears from Orsero, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.