The CEO of ADLPartner (EPA:ALP) is Olivier Riès. 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 Olivier Riès's Compensation Compare With Similar Sized Companies?
According to our data, ADLPartner has a market capitalization of €56m, and paid its CEO total annual compensation worth €428k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €200k. We looked at a group of companies with market capitalizations under €180m, and the median CEO total compensation was €285k.
As you can see, Olivier Riès is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ADLPartner is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at ADLPartner has changed over time.
Is ADLPartner Growing?
On average over the last three years, ADLPartner has grown earnings per share (EPS) by 20% each year (using a line of best fit). Its revenue is up 12% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has ADLPartner Been A Good Investment?
With a total shareholder return of 4.1% over three years, ADLPartner has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount ADLPartner pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Shareholders may want to check for free if ADLPartner insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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