It's Unlikely That Gefran S.p.A.'s (BIT:GE) CEO Will See A Huge Pay Rise This Year

Key Insights

• Gefran to hold its Annual General Meeting on 23rd of April
• Total pay for CEO Marcello Perini includes €343.1k salary
• The overall pay is 45% above the industry average
• Gefran's EPS grew by 39% over the past three years while total shareholder return over the past three years was 31%

Performance at Gefran S.p.A. (BIT:GE) has been reasonably good and CEO Marcello Perini has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 23rd of April. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Gefran

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

According to our data, Gefran S.p.A. has a market capitalization of €114m, and paid its CEO total annual compensation worth €471k over the year to December 2023. We note that's a decrease of 27% compared to last year. Notably, the salary which is €343.1k, represents most of the total compensation being paid.

For comparison, other companies in the Italian Electronic industry with market capitalizations below €187m, reported a median total CEO compensation of €324k. Accordingly, our analysis reveals that Gefran S.p.A. pays Marcello Perini north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	€343k	€314k	73%
Other	€128k	€330k	27%
Total Compensation	€471k	€644k	100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. According to our research, Gefran has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Gefran S.p.A.'s Growth

Gefran S.p.A. has seen its earnings per share (EPS) increase by 39% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Gefran S.p.A. Been A Good Investment?

Gefran S.p.A. has served shareholders reasonably well, with a total return of 31% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Gefran that investors should be aware of in a dynamic business environment.

Important note: Gefran is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.