Here's Why Davide Campari-Milano N.V.'s (BIT:CPR) CEO Might See A Pay Rise Soon

Key Insights

• Davide Campari-Milano's Annual General Meeting to take place on 13th of April
• Salary of €1.09m is part of CEO Bob Kunze-Concewitz's total remuneration
• The total compensation is 36% less than the average for the industry
• Davide Campari-Milano's total shareholder return over the past three years was 77% while its EPS grew by 3.3% over the past three years

The decent performance at Davide Campari-Milano N.V. (BIT:CPR) recently will please most shareholders as they go into the AGM coming up on 13th of April. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

View our latest analysis for Davide Campari-Milano

How Does Total Compensation For Bob Kunze-Concewitz Compare With Other Companies In The Industry?

Our data indicates that Davide Campari-Milano N.V. has a market capitalization of €13b, and total annual CEO compensation was reported as €3.8m for the year to December 2022. 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 €1.1m.

For comparison, other companies in the Italy Beverage industry with market capitalizations above €7.3b, reported a median total CEO compensation of €6.0m. In other words, Davide Campari-Milano pays its CEO lower than the industry median. What's more, Bob Kunze-Concewitz holds €5.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	€1.1m	€1.1m	28%
Other	€2.7m	€2.7m	72%
Total Compensation	€3.8m	€3.8m	100%

On an industry level, roughly 54% of total compensation represents salary and 46% is other remuneration. In Davide Campari-Milano's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Davide Campari-Milano N.V.'s Growth

Over the past three years, Davide Campari-Milano N.V. has seen its earnings per share (EPS) grow by 3.3% per year. Its revenue is up 24% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Davide Campari-Milano N.V. Been A Good Investment?

We think that the total shareholder return of 77%, over three years, would leave most Davide Campari-Milano N.V. shareholders smiling. 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...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Davide Campari-Milano (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Davide Campari-Milano, 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.