After years of incredible growth, by 2023, the remuneration of the CEOs of the main companies of the Afari Square had stabilized and in some cases declined, despite the fact that 67% of Italian blue-chip CEOs achieved results that exceeded short-term goals. This is the twelfth edition of the “Compensation research”, drawn up by Mercer, aims to analyse the fixed and variable salaries of managing directors and administrative and controlling bodies in major Italian companies.
According to the latest Assonime Corporate Governance Report, Average total compensation one of CEO In 2023, the sales of large enterprises will be approximately 4.2 million euros Public Company (i.e. companies included in the Ftse Mib), €1.9 million for medium-sized companies (mid-cap) and €0.7 million for small companies (small cap). Assonime’s research highlights that CEO remuneration also varies by industry and company ownership structure. Their remuneration is slightly higher in large companies (9%) Banks and Insurance Companies Compared with other large companies
Ftse Mib: CEO remuneration stable in 2023
Well, studies show that fixed wages Managing Director Piazza Affari remains generally stable with a slight decrease of 5% compared to 2022. We read in the report that this trend is also always reflected in the short-term incentive system, where the value of this sector has slightly decreased in 2023 (9%) compared to the previous year.
Most companies on the Italian Stock Exchange’s FTSE Mib list consolidated their results in 2023, with gross profits up 7% from the previous year. This growth was mainly driven by the financial services sector, which benefited from rising interest rates due to restrictive monetary policy measures.
However, from the perspective of short-term performance analysis, in 2023, 67% of CEOs achieved performance above the target table targets, while the number of companies with performance below the target increased, from 18% in 2022 to 25% in 2023.
CEOs and non-executive directors: remuneration trends
At the same time, the Chairman of the Board and the Chairman of the Board Non-Executive Director They kept their respective salaries, as well as those of board committee members, at 2022 levels, even as activity generally increased. Finally, the study noted a decrease in remuneration paid to members. Nomination Committee.
Furthermore, by highlighting the D&I theme, namely diversity and inclusion, Mercer’s research shows that the implementation of these indicators is widespread in 72% of cases. Specifically, about a third of the sample (32%) use them in both CEO incentive plans, 36% use them only in long-term plans, and another 32% use them only in short-term plans.
More specifically, studying the use of gender balance indicators aimed at encouraging more women in companies, the study shows that these parameters are present in 65% of STI (Short-term Incentive) plans and 57% of LTI (Long-term Incentive for CEOs: widely used, but not in line with the significant presence of women in leadership positions. Specifically, if we consider management positions (an increase compared to 31% in 2022), the proportion of women will reach 33% by 2023; if we consider the overall management level of FTSE MIB companies, the proportion of women will reach 20%.