This Is Why Italgas S.p.A.'s (BIT:IG) CEO Compensation Looks Appropriate

Key Insights

• Italgas to hold its Annual General Meeting on 13th of May
• Salary of €859.0k is part of CEO Paolo Gallo's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Italgas' EPS grew by 9.4% and over the past three years, the total shareholder return was 39%

We've discovered 2 warning signs about Italgas. View them for free.

Under the guidance of CEO Paolo Gallo, Italgas S.p.A. (BIT:IG) has performed reasonably well recently. 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 13th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Italgas

How Does Total Compensation For Paolo Gallo Compare With Other Companies In The Industry?

Our data indicates that Italgas S.p.A. has a market capitalization of €5.8b, and total annual CEO compensation was reported as €2.1m for the year to December 2024. We note that's a decrease of 19% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €859k.

On examining similar-sized companies in the Italy Gas Utilities industry with market capitalizations between €3.5b and €11b, we discovered that the median CEO total compensation of that group was €1.8m. From this we gather that Paolo Gallo is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	€859k	€860k	41%
Other	€1.2m	€1.7m	59%
Total Compensation	€2.1m	€2.6m	100%

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. In Italgas' case, non-salary compensation represents a greater slice of total remuneration, 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.

Italgas S.p.A.'s Growth

Italgas S.p.A. has seen its earnings per share (EPS) increase by 9.4% a year over the past three years. It saw its revenue drop 4.2% over the last year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

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

We think that the total shareholder return of 39%, over three years, would leave most Italgas S.p.A. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Italgas you should be aware of, and 1 of them is potentially serious.

Important note: Italgas 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.