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Compensation of top managers in Italy: an in-depth analysis

A significant increase in compensation

In 2023, Italy recorded a significant increase in the compensation of top managers, with an average total compensation for the chief executives of listed companies reaching 2,652 million euros. This represents an increase of 8% compared to the previous year, despite a reduction in the fixed component, which fell to 846 thousand euros. The data come from Spencer Stuart’s 2024 Board Index, which analyzed the boards of directors of the top 100 Italian listed companies by
capitalization.

Compensation analysis in the FTSE MIB

Particularly interesting is the analysis of the companies included in the FTSE MIB index, where the average compensation of chief executives rises to 3.8 million euros. Here, 78% of CEOs earn more than one million euros, and 24% exceed 4 million.
This scenario highlights a growing pay gap, with presidents earning an average of 1.2 million euros and directors receiving 168 thousand euros.

Dynamism in the boards of directors

Another important aspect that emerged from the survey is the dynamism in the renewal of the boards of directors. In 2023, 36 companies, including 15 in the FTSE MIB index, renewed their Board of Directors, with a total of 183 appointments. This indicates a growing openness to change and diversification in management roles, with an increasing number of directors appointed for the first time
in a listed company.

The role of family businesses

Family businesses present an interesting picture: 51% of the bosses come from the family and often also hold the role of president. However, the average fixed compensation in these companies is lower than in non-family companies, with an average fee for directors of 42 thousand euros compared to 65 thousand euros for non-family members. This suggests that family businesses may have a less competitive compensation structure, but with strong continuity in leadership
.

The question of succession

A crucial theme that emerged from the survey is that of succession. Only 59 of the 100 companies analyzed have defined a plan for the succession of the CEO, and only 16 have a structured long-term plan. Most companies have only a ‘contingency plan’ for emergency situations. This highlights the need for more strategic and forward-looking planning
.

The need for cultural change

Giovanna Gallì, partner and director of Spencer Stuart, stresses that succession should not be seen only as an emergency issue, but as a path to be developed. The growing awareness of the need to ensure stability and continuity in leadership is evident, but it requires a significant cultural change. The recipe proposed by Gallì includes greater involvement of shareholders and supervisory authorities, to stimulate companies to undertake a more structured path
.

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