Key Insights

• Ermenegildo Zegna's Annual General Meeting to take place on 26th of June

• Total pay for CEO Gildo di Monte Rubello includes €2.00m salary

• The overall pay is 43% above the industry average

• Over the past three years, Ermenegildo Zegna's EPS grew by 65% and over the past three years, the total shareholder return was 21%

Performance at Ermenegildo Zegna N.V. (NYSE:ZGN) has been reasonably good and CEO Gildo di Monte Rubello has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of June. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Ermenegildo Zegna

How Does Total Compensation For Gildo di Monte Rubello Compare With Other Companies In The Industry?

According to our data, Ermenegildo Zegna N.V. has a market capitalization of US$2.9b, and paid its CEO total annual compensation worth €13m over the year to December 2023. We note that's an increase of 11% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €2.0m.

For comparison, other companies in the American Luxury industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of €9.4m. Hence, we can conclude that Gildo di Monte Rubello is remunerated higher than the industry median. Moreover, Gildo di Monte Rubello also holds US$95m worth of Ermenegildo Zegna stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. Ermenegildo Zegna pays a modest slice of remuneration through salary, as compared 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.

Ermenegildo Zegna N.V.'s Growth

Ermenegildo Zegna N.V. has seen its earnings per share (EPS) increase by 65% a year over the past three years. Its revenue is up 28% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Ermenegildo Zegna N.V. Been A Good Investment?

Ermenegildo Zegna N.V. has served shareholders reasonably well, with a total return of 21% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

Shareholders may want to check for free if Ermenegildo Zegna insiders are buying or selling shares.

Switching gears from Ermenegildo Zegna, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.

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