Philippe Robardey is the CEO of Sogeclair SA (EPA:SOG). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Robardey's Compensation Compare With Similar Sized Companies?
Our data indicates that Sogeclair SA is worth €87m, and total annual CEO compensation is €1.6m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €215k. We took a group of companies with market capitalizations below €180m, and calculated the median CEO total compensation to be €120k.
It would therefore appear that Sogeclair SA pays Philippe Robardey more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Sogeclair has changed from year to year.
Is Sogeclair SA Growing?
Over the last three years Sogeclair SA has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). It achieved revenue growth of 8.2% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sogeclair SA Been A Good Investment?
Most shareholders would probably be pleased with Sogeclair SA for providing a total return of 47% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Sogeclair SA with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Sogeclair shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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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.