Here's Why Shareholders May Consider Paying Recordati Industria Chimica e Farmaceutica S.p.A.'s (BIT:REC) CEO A Little More

Key Insights

• Recordati Industria Chimica e Farmaceutica's Annual General Meeting to take place on 29th of April
• CEO Rob Koremans' total compensation includes salary of €628.0k
• Total compensation is 63% below industry average
• Recordati Industria Chimica e Farmaceutica's total shareholder return over the past three years was 16% while its EPS grew by 2.5% over the past three years

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The decent performance at Recordati Industria Chimica e Farmaceutica S.p.A. (BIT:REC) recently will please most shareholders as they go into the AGM coming up on 29th 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. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Recordati Industria Chimica e Farmaceutica

Comparing Recordati Industria Chimica e Farmaceutica S.p.A.'s CEO Compensation With The Industry

According to our data, Recordati Industria Chimica e Farmaceutica S.p.A. has a market capitalization of €10.0b, and paid its CEO total annual compensation worth €3.3m over the year to December 2024. We note that's an increase of 31% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €628k.

For comparison, other companies in the Italy Pharmaceuticals industry with market capitalizations above €6.9b, reported a median total CEO compensation of €8.7m. In other words, Recordati Industria Chimica e Farmaceutica pays its CEO lower than the industry median.

Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. In Recordati Industria Chimica e Farmaceutica'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.

Recordati Industria Chimica e Farmaceutica S.p.A.'s Growth

Recordati Industria Chimica e Farmaceutica S.p.A. has seen its earnings per share (EPS) increase by 2.5% a year over the past three years. Its revenue is up 12% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Recordati Industria Chimica e Farmaceutica S.p.A. Been A Good Investment?

Recordati Industria Chimica e Farmaceutica S.p.A. has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Recordati Industria Chimica e Farmaceutica that you should be aware of before investing.

Switching gears from Recordati Industria Chimica e Farmaceutica, 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.