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Is Danone SA's (EPA:BN) CEO Paid Enough Relative To Peers?

Simply Wall St

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Emmanuel Faber became the CEO of Danone SA (EPA:BN) in 2014. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Danone

How Does Emmanuel Faber's Compensation Compare With Similar Sized Companies?

Our data indicates that Danone SA is worth €47b, and total annual CEO compensation is €4.1m. (This is based on the year to December 2018). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.0m. We took a group of companies with market capitalizations over €7.1b, and calculated the median CEO total compensation to be €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).

That means Emmanuel Faber receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

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

ENXTPA:BN CEO Compensation, June 17th 2019

Is Danone SA Growing?

Over the last three years Danone SA has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Revenue was pretty flat on last year.

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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Danone SA Been A Good Investment?

Danone SA has generated a total shareholder return of 31% over three years, so most shareholders would be reasonably content. 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...

Remuneration for Emmanuel Faber is close enough to the median pay for a CEO of a large company .

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Danone.

If you want to buy a stock that is better than Danone, this free list of high return, low debt companies is a great place to look.

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.