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Is Christian Dior SE (EPA:CDI) Excessively Paying Its CEO?

Simply Wall St

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Sidney Toledano has been the CEO of Christian Dior SE (EPA:CDI) since 2016. First, this article will compare CEO compensation with compensation at other large companies. 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.

View our latest analysis for Christian Dior

How Does Sidney Toledano's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Christian Dior SE has a market cap of €83b, and is paying total annual CEO compensation of €13m. (This number is for the twelve months until December 2018). That's a modest increase of 3.0% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.4m. When we examined a group of companies with market caps over €7.0b, we found that their median CEO total compensation was €3.4m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

It would therefore appear that Christian Dior SE pays Sidney Toledano more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Christian Dior, below.

ENXTPA:CDI CEO Compensation, June 29th 2019

Is Christian Dior SE Growing?

Christian Dior SE has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.2% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Christian Dior SE Been A Good Investment?

I think that the total shareholder return of 233%, over three years, would leave most Christian Dior SE shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount Christian Dior SE pays its CEO, and compared it to the amount paid by other large companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Christian Dior shares (free trial).

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

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.