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

Key Insights

• Gruppo MutuiOnline to hold its Annual General Meeting on 29th of April
• Total pay for CEO Alessandro Alvaro Fracassi includes €400.0k salary
• The total compensation is similar to the average for the industry
• Gruppo MutuiOnline's three-year loss to shareholders was 23% while its EPS was down 35% over the past three years

The underwhelming share price performance of Gruppo MutuiOnline S.p.A (BIT:MOL) in the past three years would have disappointed many shareholders. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 29th of April, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

Check out our latest analysis for Gruppo MutuiOnline

How Does Total Compensation For Alessandro Alvaro Fracassi Compare With Other Companies In The Industry?

Our data indicates that Gruppo MutuiOnline S.p.A has a market capitalization of €1.3b, and total annual CEO compensation was reported as €1.2m for the year to December 2023. We note that's an increase of 42% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €400k.

On comparing similar companies from the Italy Consumer Finance industry with market caps ranging from €939m to €3.0b, we found that the median CEO total compensation was €1.2m. This suggests that Gruppo MutuiOnline remunerates its CEO largely in line with the industry average. Moreover, Alessandro Alvaro Fracassi also holds €11m worth of Gruppo MutuiOnline stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	€400k	€400k	33%
Other	€806k	€452k	67%
Total Compensation	€1.2m	€852k	100%

On an industry level, roughly 57% of total compensation represents salary and 43% is other remuneration. Gruppo MutuiOnline pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Gruppo MutuiOnline S.p.A's Growth Numbers

Gruppo MutuiOnline S.p.A has reduced its earnings per share by 35% a year over the last three years. It achieved revenue growth of 31% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Gruppo MutuiOnline S.p.A Been A Good Investment?

Since shareholders would have lost about 23% over three years, some Gruppo MutuiOnline S.p.A investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Gruppo MutuiOnline that investors should think about before committing capital to this stock.

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.

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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.