Esprinet S.p.A.'s (BIT:PRT) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Esprinet to hold its Annual General Meeting on 17th of April
• CEO Alessandro Cattani's total compensation includes salary of €553.0k
• The total compensation is 59% higher than the average for the industry
• Over the past three years, Esprinet's EPS fell by 21% and over the past three years, the total loss to shareholders 45%

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Shareholders will probably not be too impressed with the underwhelming results at Esprinet S.p.A. (BIT:PRT) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 17th of April. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Esprinet

How Does Total Compensation For Alessandro Cattani Compare With Other Companies In The Industry?

At the time of writing, our data shows that Esprinet S.p.A. has a market capitalization of €229m, and reported total annual CEO compensation of €842k for the year to December 2024. We note that's an increase of 42% above last year. In particular, the salary of €553.0k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Italian Electronic industry with market capitalizations between €89m and €358m, we discovered that the median CEO total compensation of that group was €530k. Hence, we can conclude that Alessandro Cattani is remunerated higher than the industry median. Furthermore, Alessandro Cattani directly owns €3.0m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. Esprinet is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

Over the last three years, Esprinet S.p.A. has shrunk its earnings per share by 21% per year. Its revenue is up 3.9% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

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

The return of -45% over three years would not have pleased Esprinet S.p.A. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Esprinet that you should be aware of before investing.

Switching gears from Esprinet, 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.

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.