Philippe Brassac has been the CEO of Crédit Agricole S.A. (EPA:ACA) since 2015. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Philippe Brassac's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Crédit Agricole S.A. has a market cap of €32b, and reported total annual CEO compensation of €2.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.0m. We looked at a group of companies with market capitalizations over €7.2b and the median CEO total compensation was €3.2m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
Most shareholders would consider it a positive that Philippe Brassac takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Crédit Agricole, below.
Is Crédit Agricole S.A. Growing?
On average over the last three years, Crédit Agricole S.A. has grown earnings per share (EPS) by 20% each year (using a line of best fit). Its revenue is up 2.9% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Crédit Agricole S.A. Been A Good Investment?
Boasting a total shareholder return of 42% over three years, Crédit Agricole S.A. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Crédit Agricole S.A. pays its CEO less than the average at large companies.
Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Philippe Brassac deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Crédit Agricole.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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