Bank of Valletta p.l.c.'s (MTSE:BOV) CEO Looks Due For A Compensation Raise

Key Insights

• Bank of Valletta to hold its Annual General Meeting on 29th of May
• Total pay for CEO Kenneth Farrugia includes €276.2k salary
• The overall pay is 38% below the industry average
• Bank of Valletta's total shareholder return over the past three years was 178% while its EPS grew by 53% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Bank of Valletta. Read for free now.

Shareholders will be pleased by the impressive results for Bank of Valletta p.l.c. (MTSE:BOV) recently and CEO Kenneth Farrugia has played a key role. At the upcoming AGM on 29th of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Bank of Valletta

Comparing Bank of Valletta p.l.c.'s CEO Compensation With The Industry

At the time of writing, our data shows that Bank of Valletta p.l.c. has a market capitalization of €1.2b, and reported total annual CEO compensation of €382k for the year to December 2024. That's a slight decrease of 5.0% on the prior year. Notably, the salary which is €276.2k, represents most of the total compensation being paid.

In comparison with other companies in the Europe Banks industry with market capitalizations ranging from €886m to €2.8b, the reported median CEO total compensation was €619k. Accordingly, Bank of Valletta pays its CEO under the industry median. What's more, Kenneth Farrugia holds €186k worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	€276k	€276k	72%
Other	€106k	€127k	28%
Total Compensation	€382k	€403k	100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Bank of Valletta pays out 72% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Bank of Valletta p.l.c.'s Growth

Bank of Valletta p.l.c.'s earnings per share (EPS) grew 53% per year over the last three years. In the last year, its revenue is up 13%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing 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 Bank of Valletta p.l.c. Been A Good Investment?

Boasting a total shareholder return of 178% over three years, Bank of Valletta p.l.c. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 Bank of Valletta that you should be aware of before investing.

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.