Pierre Cesarini has been the CEO of Claranova SE (EPA:CLA) since 2013. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Pierre Cesarini's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Claranova SE has a market cap of €315m, and reported total annual CEO compensation of €2.7m for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €277k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from €179m to €716m, we found the median CEO total compensation was €396k.
It would therefore appear that Claranova SE pays Pierre Cesarini 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 Claranova, below.
Is Claranova SE Growing?
Claranova SE has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is up 62% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Claranova SE Been A Good Investment?
I think that the total shareholder return of 270%, over three years, would leave most Claranova SE shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Claranova SE, and compared it to remuneration at a group of similar sized 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. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Claranova.
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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