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Is Artea SA's (EPA:ARTE) CEO Overpaid Relative To Its Peers?

Simply Wall St

Philippe Baudry is the CEO of Artea SA (EPA:ARTE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Artea

How Does Philippe Baudry's Compensation Compare With Similar Sized Companies?

According to our data, Artea SA has a market capitalization of €59m, and paid its CEO total annual compensation worth €288k over the year to December 2018. Notably, the salary of €284k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under €182m, and the median CEO total compensation was €150k.

It would therefore appear that Artea SA pays Philippe Baudry more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 Artea, below.

ENXTPA:ARTE CEO Compensation, November 9th 2019

Is Artea SA Growing?

Artea SA has increased its earnings per share (EPS) by an average of 43% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 56%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Artea SA Been A Good Investment?

Artea SA has served shareholders reasonably well, with a total return of 12% 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...

We compared the total CEO remuneration paid by Artea SA, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Artea (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.