Laurent Lafarge has been the CEO of Anevia Société Anonyme (EPA:ALANV) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Laurent Lafarge's Compensation Compare With Similar Sized Companies?
According to our data, Anevia Société Anonyme has a market capitalization of €11m, and paid its CEO total annual compensation worth €239k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €130k. We took a group of companies with market capitalizations below €180m, and calculated the median CEO total compensation to be €158k.
As you can see, Laurent Lafarge is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Anevia Société Anonyme is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Anevia Société Anonyme, below.
Is Anevia Société Anonyme Growing?
Over the last three years Anevia Société Anonyme has shrunk its earnings per share by an average of 47% per year (measured with a line of best fit). Its revenue is up 4.2% over last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Anevia Société Anonyme Been A Good Investment?
Given the total loss of 26% over three years, many shareholders in Anevia Société Anonyme are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Anevia Société Anonyme, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if Anevia Société Anonyme insiders are buying or selling shares.
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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.