It's Probably Less Likely That Davide Campari-Milano N.V.'s (BIT:CPR) CEO Will See A Huge Pay Rise This Year

Key Insights

• Davide Campari-Milano's Annual General Meeting to take place on 11th of April
• CEO Bob Kunze-Concewitz's total compensation includes salary of €1.09m
• The overall pay is comparable to the industry average
• Over the past three years, Davide Campari-Milano's EPS grew by 18% and over the past three years, the total loss to shareholders 4.7%

In the past three years, shareholders of Davide Campari-Milano N.V. (BIT:CPR) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 11th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Davide Campari-Milano

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

At the time of writing, our data shows that Davide Campari-Milano N.V. has a market capitalization of €11b, and reported total annual CEO compensation of €4.2m for the year to December 2023. We note that's an increase of 11% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.1m.

For comparison, other companies in the Italy Beverage industry with market capitalizations above €7.4b, reported a median total CEO compensation of €5.7m. So it looks like Davide Campari-Milano compensates Bob Kunze-Concewitz in line with the median for the industry. What's more, Bob Kunze-Concewitz holds €4.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	€1.1m	€1.1m	26%
Other	€3.2m	€2.7m	74%
Total Compensation	€4.2m	€3.8m	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. Davide Campari-Milano pays a modest slice of remuneration through salary, as compared 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.

A Look at Davide Campari-Milano N.V.'s Growth Numbers

Davide Campari-Milano N.V.'s earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 8.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Davide Campari-Milano N.V. Been A Good Investment?

With a three year total loss of 4.7% for the shareholders, Davide Campari-Milano N.V. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. 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.

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.