Sébastien Bazin became the CEO of Accor SA (EPA:AC) in 2013. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Sébastien Bazin's Compensation Compare With Similar Sized Companies?
Our data indicates that Accor SA is worth €11b, and total annual CEO compensation is €4.1m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €950k. We looked at a group of companies with market capitalizations over €7.2b and the median CEO total compensation was €3.9m. (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 Sébastien Bazin receives fairly typical remuneration for the CEO of a large company. 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 Accor has changed over time.
Is Accor SA Growing?
On average over the last three years, Accor SA has shrunk earnings per share by 16% each year (measured with a line of best fit). In the last year, its revenue is up 56%.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Accor SA Been A Good Investment?
Accor SA has served shareholders reasonably well, with a total return of 21% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Sébastien Bazin is paid around the same as most CEOs of large companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Accor.
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 email@example.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.