In 2015 Philippe Brassac was appointed CEO of Crédit Agricole SA (EPA:ACA). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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.
How Does Philippe Brassac’s Compensation Compare With Similar Sized Companies?
According to our data, Crédit Agricole SA has a market capitalization of €33.2b, and pays its CEO total annual compensation worth €2m. That’s a fairly small increase of 2.9% on year before. When we examined a group of companies with market caps over €7.0b, we found that their median CEO compensation was €4m.
A first glance this seems like a real positive for shareholders, since Philippe Brassac is paid less than the average compensation paid by other large companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Crédit Agricole has changed over time.
Is Crédit Agricole SA Growing?
Over the last three years Crédit Agricole SA has grown its earnings per share (EPS) by an average of 14% per year. It achieved revenue growth of 13% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Crédit Agricole SA Been A Good Investment?
Crédit Agricole SA has served shareholders reasonably well, with a total return of 25% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
It looks like Crédit Agricole SA pays its CEO less than the average at large companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven’t been top notch, there is nothing to suggest to us that Philippe Brassac is overcompensated.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Crédit Agricole SA.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.