Ermenegildo Zegna N.V.'s (NYSE:ZGN) CEO Compensation Is Looking A Bit Stretched At The Moment

In This Article:

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.

Component

2023

2022

Proportion (2023)

Salary

€2.0m

€1.4m

15%

Other

€11m

€11m

85%

Total Compensation

€13m

€12m

100%

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.

ceo-compensation
NYSE:ZGN CEO Compensation June 20th 2024

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.