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Is AST Groupe (EPA:ASP) Overpaying Its CEO?

Kevin Zeng

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In 2000 Alain Tur was appointed CEO of AST Groupe (EPA:ASP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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 AST Groupe

How Does Alain Tur’s Compensation Compare With Similar Sized Companies?

Our data indicates that AST Groupe is worth €67m, and total annual CEO compensation is €168k. (This number is for the twelve months until 2016). Notably, the salary of €161k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below €175m, and calculated the median CEO compensation to be €227k.

That means Alain Tur receives fairly typical remuneration for the CEO of a company that size. 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 AST Groupe has changed over time.

ENXTPA:ASP CEO Compensation February 5th 19

Is AST Groupe Growing?

On average over the last three years, AST Groupe has grown earnings per share (EPS) by 70% each year (using a line of best fit). It achieved revenue growth of 58% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has AST Groupe Been A Good Investment?

Most shareholders would probably be pleased with AST Groupe for providing a total return of 100% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Alain Tur is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AST Groupe.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.