Exor, Elkann smiles: from the remuneration plan 18 million a year. But the target to reach is far from easy
During the last meeting of Exoron the face of John Elkann he painted a smile. The financial holding, one step away from farewell to Piazza Affari for the Dutch Stock Exchange, has approved the remuneration plan of his number one, increasing the CEO’s future free stock dowry by 50%. There is talk of figures ranging from a minimum of 18 million euros to a maximum of 54 million to be collected in three years.
The plan, in fact, goes from an annual value of 4 million euros to 6 million over the next three years. Thus, the heir of the lawyer, secures a rather rich pot of shares at no cost. But the meal is not free: to get the stock grant from Exorthe title must ensure a Total shareholders return, that is, a compounded yield between appreciation and dividends of 8% per annum. Not only. The net asset value will need to rise in line with performance of the MSCI World index in the three years.
Only under these conditions, therefore, can the dream of John Elkann. But beware, this is “only” the closest target. In fact, if Exorbetween price, stock market and dividends will give an annual return above 20% over the period of the plan and the Nav of the holding company will rise by more than 10% compared to the MSCI world index here is that the treasury in free shares will multiply by three, rising from 6 to 18 million a year.
A very demanding performance, in short. But not so far from the past performance of the finance company. The Navthat is the net debt value of assets owned by Exor it has grown over time at rates much higher than the target of the new remuneration plan for the scion of the house Lambs. Since 2009, it has always broken through the wall of progress of the global equity index. The cumulative increase since then is even more than 900% against a + 375% of the MSCI World. Only in 2011 and 2018 the Nav fell in negative, while there were years in which the growth of the net worth of the home holding company Elkann it was also over 40%.
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