We Think Shareholders May Want To Consider A Review Of Amplifon S.p.A.'s (BIT:AMP) CEO Compensation Package

Key Insights

• Amplifon to hold its Annual General Meeting on 23rd of April
• CEO Enrico Vita's total compensation includes salary of €1.51m
• The overall pay is 140% above the industry average
• Amplifon's three-year loss to shareholders was 58% while its EPS was down 3.9% over the past three years

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Amplifon S.p.A. (BIT:AMP) has not performed well recently and CEO Enrico Vita will probably need to up their game. At the upcoming AGM on 23rd of April, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Amplifon

Comparing Amplifon S.p.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Amplifon S.p.A. has a market capitalization of €3.7b, and reported total annual CEO compensation of €5.7m for the year to December 2024. We note that's a decrease of 16% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.5m.

On examining similar-sized companies in the Italy Healthcare industry with market capitalizations between €1.8b and €5.6b, we discovered that the median CEO total compensation of that group was €2.4m. Hence, we can conclude that Enrico Vita is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	€1.5m	€1.5m	26%
Other	€4.2m	€5.3m	74%
Total Compensation	€5.7m	€6.8m	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. It's interesting to note that Amplifon allocates a smaller portion of compensation to salary 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.

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

Over the last three years, Amplifon S.p.A. has shrunk its earnings per share by 3.9% per year. Its revenue is up 6.6% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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?

With a total shareholder return of -58% over three years, Amplifon S.p.A. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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 investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.