ITT Inc.'s (NYSE:ITT) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• ITT will host its Annual General Meeting on 15th of May
• Total pay for CEO Luca Savi includes US$1.09m salary
• The overall pay is comparable to the industry average
• ITT's EPS grew by 84% over the past three years while total shareholder return over the past three years was 51%

We have been pretty impressed with the performance at ITT Inc. (NYSE:ITT) recently and CEO Luca Savi deserves a mention for their role in it. Coming up to the next AGM on 15th of May, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for ITT

Comparing ITT Inc.'s CEO Compensation With The Industry

Our data indicates that ITT Inc. has a market capitalization of US$11b, and total annual CEO compensation was reported as US$9.3m for the year to December 2023. Notably, that's an increase of 36% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

For comparison, other companies in the American Machinery industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. So it looks like ITT compensates Luca Savi in line with the median for the industry. Moreover, Luca Savi also holds US$22m worth of ITT stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$1.1m	US$1.0m	12%
Other	US$8.2m	US$5.8m	88%
Total Compensation	US$9.3m	US$6.8m	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. In ITT's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ITT Inc.'s Growth

ITT Inc.'s earnings per share (EPS) grew 84% per year over the last three years. In the last year, its revenue is up 11%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ITT Inc. Been A Good Investment?

We think that the total shareholder return of 51%, over three years, would leave most ITT Inc. 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 in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

So you may want to check if insiders are buying ITT shares with their own money (free access).

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.