It's Unlikely That ITT Inc.'s (NYSE:ITT) CEO Will See A Huge Pay Rise This Year

Key Insights

• ITT will host its Annual General Meeting on 21st of May
• Total pay for CEO Luca Savi includes US$1.14m salary
• Total compensation is 49% above industry average
• Over the past three years, ITT's EPS grew by 23% and over the past three years, the total shareholder return was 113%

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CEO Luca Savi has done a decent job of delivering relatively good performance at ITT Inc. (NYSE:ITT) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21st of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for ITT

Comparing ITT Inc.'s CEO Compensation With The Industry

According to our data, ITT Inc. has a market capitalization of US$12b, and paid its CEO total annual compensation worth US$17m over the year to December 2024. Notably, that's an increase of 78% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.

On comparing similar companies in the American Machinery industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$11m. This suggests that Luca Savi is paid more than the median for the industry. Furthermore, Luca Savi directly owns US$29m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. ITT sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at ITT Inc.'s Growth Numbers

ITT Inc.'s earnings per share (EPS) grew 23% per year over the last three years. In the last year, its revenue is up 7.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has ITT Inc. Been A Good Investment?

Most shareholders would probably be pleased with ITT Inc. for providing a total return of 113% over three years. 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...

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.

Whatever your view on compensation, you might want to check if insiders are buying or selling ITT shares (free trial).

Important note: ITT 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.

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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.