Simon Azoulay has been the CEO of Alten SA (EPA:ATE) since 1998. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Simon Azoulay's Compensation Compare With Similar Sized Companies?
Our data indicates that Alten SA is worth €3.5b, and total annual CEO compensation was reported as €762k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €306k. When we examined a selection of companies with market caps ranging from €1.8b to €5.8b, we found the median CEO total compensation was €1.2m.
Most shareholders would consider it a positive that Simon Azoulay takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Alten has changed from year to year.
Is Alten SA Growing?
Over the last three years Alten SA has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). In the last year, its revenue is up 18%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Alten SA Been A Good Investment?
Boasting a total shareholder return of 69% over three years, Alten SA has done well by shareholders. 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.
It appears that Alten SA remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Simon Azoulay deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. So you may want to check if insiders are buying Alten shares with their own money (free access).
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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