Shareholders Will Probably Not Have Any Issues With Croma Security Solutions Group plc's (LON:CSSG) CEO Compensation
Key Insights
Croma Security Solutions Group's Annual General Meeting to take place on 1st of December
Total pay for CEO Roberto Fiorentino includes UK£250.0k salary
The total compensation is similar to the average for the industry
Croma Security Solutions Group's total shareholder return over the past three years was 12% while its EPS grew by 5.2% over the past three years
Under the guidance of CEO Roberto Fiorentino, Croma Security Solutions Group plc (LON:CSSG) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 1st of December. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Croma Security Solutions Group
How Does Total Compensation For Roberto Fiorentino Compare With Other Companies In The Industry?
At the time of writing, our data shows that Croma Security Solutions Group plc has a market capitalization of UK£9.0m, and reported total annual CEO compensation of UK£254k for the year to June 2023. That's a fairly small increase of 3.7% over the previous year. In particular, the salary of UK£250.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the British Electronic industry with market capitalizations below UK£159m, reported a median total CEO compensation of UK£268k. From this we gather that Roberto Fiorentino is paid around the median for CEOs in the industry. Furthermore, Roberto Fiorentino directly owns UK£2.6m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£250k | UK£241k | 98% |
Other | UK£4.0k | UK£4.0k | 2% |
Total Compensation | UK£254k | UK£245k | 100% |
On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. Croma Security Solutions Group has gone down a largely traditional route, paying Roberto Fiorentino a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Croma Security Solutions Group plc's Growth
Over the past three years, Croma Security Solutions Group plc has seen its earnings per share (EPS) grow by 5.2% per year. It achieved revenue growth of 38% over the last year.
We like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Croma Security Solutions Group plc Been A Good Investment?
Croma Security Solutions Group plc has served shareholders reasonably well, with a total return of 12% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
Roberto receives almost all of their compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which shouldn't be ignored) in Croma Security Solutions Group we think you should know about.
Important note: Croma Security Solutions Group 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.
