Gil Beyen has been the CEO of ERYTECH Pharma S.A. (EPA:ERYP) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Gil Beyen's Compensation Compare With Similar Sized Companies?
According to our data, ERYTECH Pharma S.A. has a market capitalization of €121m, and pays its CEO total annual compensation worth €645k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at €276k. We looked at a group of companies with market capitalizations under €179m, and the median CEO total compensation was €138k.
Thus we can conclude that Gil Beyen receives more in total compensation than the median of a group of companies in the same market, and of similar size to ERYTECH Pharma S.A.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at ERYTECH Pharma, below.
Is ERYTECH Pharma S.A. Growing?
ERYTECH Pharma S.A. has increased its earnings per share (EPS) by an average of 7.0% a year, over the last three years (using a line of best fit). It achieved revenue growth of 20% over the last year.
I think the revenue growth is good. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.
Has ERYTECH Pharma S.A. Been A Good Investment?
Since shareholders would have lost about 71% over three years, some ERYTECH Pharma S.A. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by ERYTECH Pharma S.A., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ERYTECH Pharma (free visualization of insider trades).
If you want to buy a stock that is better than ERYTECH Pharma, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.