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In 2016 Jean-Marc Jestin was appointed CEO of Klépierre SA (EPA:LI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Jean-Marc Jestin's Compensation Compare With Similar Sized Companies?
According to our data, Klépierre SA has a market capitalization of €8.8b, and pays its CEO total annual compensation worth €2.3m. (This number is for the twelve months until December 2018). We note that's an increase of 25% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €650k. We took a group of companies with market capitalizations over €7.1b, and calculated the median CEO total compensation to be €3.4m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Most shareholders would consider it a positive that Jean-Marc Jestin takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Klépierre, below.
Is Klépierre SA Growing?
Klépierre SA has increased its earnings per share (EPS) by an average of 21% a year, over the last three years (using a line of best fit). Its revenue is down -2.0% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Klépierre SA Been A Good Investment?
Since shareholders would have lost about 15% over three years, some Klépierre SA shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
It appears that Klépierre SA remunerates its CEO below most large companies. Since the business is growing, many would argue this suggests the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Jean-Marc Jestin is generously paid, it would be good to see an improvement in business performance before too an increase in pay.
In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Shareholders may want to check for free if Klépierre 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.
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.