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Is Accor SA's (EPA:AC) CEO Paid Enough Relative To Peers?

Simply Wall St

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Sébastien Bazin has been the CEO of Accor SA (EPA:AC) since 2013. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Accor

How Does Sébastien Bazin's Compensation Compare With Similar Sized Companies?

Our data indicates that Accor SA is worth €10b, and total annual CEO compensation is €3.7m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at €950k. We took a group of companies with market capitalizations over €7.1b, and calculated the median CEO total compensation to be €2.9m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.

So Sébastien Bazin receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Accor has changed over time.

ENXTPA:AC CEO Compensation, April 1st 2019

Is Accor SA Growing?

On average over the last three years, Accor SA has shrunk earnings per share by 6.5% each year (measured with a line of best fit). It achieved revenue growth of 86% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has Accor SA Been A Good Investment?

Accor SA has not done too badly by shareholders, with a total return of 5.3%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Sébastien Bazin is paid around the same as most CEOs of large companies.

We think many would like to see better growth. While the CEO may not be underpaid, we don't think the pay is too generous either. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Accor (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.