Henri Poupart-Lafarge has been the CEO of Alstom SA (EPA:ALO) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Henri Poupart-Lafarge's Compensation Compare With Similar Sized Companies?
Our data indicates that Alstom SA is worth €8.7b, and total annual CEO compensation was reported as €3.1m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at €750k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from €3.7b to €11b, and discovered that the median CEO total compensation of that group was €3.0m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Alstom. Speaking on an industry level, we can see that nearly 73% of total compensation represents salary, while the remainder of 27% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Alstom, in sharp contrast to the overall sector.
So Henri Poupart-Lafarge is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Alstom has changed over time.
Is Alstom SA Growing?
Over the last three years Alstom SA has seen earnings per share (EPS) move in a positive direction by an average of 16% per year (using a line of best fit). It achieved revenue growth of 1.6% over the 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 Alstom SA Been A Good Investment?
I think that the total shareholder return of 45%, over three years, would leave most Alstom SA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Henri Poupart-Lafarge is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Moving away from CEO compensation for the moment, we've identified 1 warning sign for Alstom that you should be aware of before investing.
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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