Amplifon S.p.A.'s (BIT:AMP) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Amplifon's Annual General Meeting to take place on 21st of April
• CEO Enrico Vita's total compensation includes salary of €1.48m
• The overall pay is 100% above the industry average
• Amplifon's EPS grew by 18% over the past three years while total shareholder return over the past three years was 68%

Performance at Amplifon S.p.A. (BIT:AMP) has been reasonably good and CEO Enrico Vita has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21st of April. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Amplifon

How Does Total Compensation For Enrico Vita Compare With Other Companies In The Industry?

At the time of writing, our data shows that Amplifon S.p.A. has a market capitalization of €7.3b, and reported total annual CEO compensation of €7.2m for the year to December 2022. We note that's an increase of 35% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.5m.

In comparison with other companies in the Italy Healthcare industry with market capitalizations ranging from €3.6b to €11b, the reported median CEO total compensation was €3.6m. Accordingly, our analysis reveals that Amplifon S.p.A. pays Enrico Vita north of the industry median.

On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. In Amplifon's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Amplifon S.p.A.'s Growth

Amplifon S.p.A.'s earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 8.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Amplifon S.p.A. Been A Good Investment?

Boasting a total shareholder return of 68% over three years, Amplifon 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.

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Amplifon that you should be aware of before investing.

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.