Jean-Laurent Bonnafe became the CEO of BNP Paribas SA (EPA:BNP) in 2011. This analysis aims first to contrast CEO compensation with other large 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 Jean-Laurent Bonnafe's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that BNP Paribas SA has a market cap of €63b, and reported total annual CEO compensation of €3.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €1.6m. We looked at a group of companies with market capitalizations over €7.3b and the median CEO total compensation was €3.2m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Jean-Laurent Bonnafe receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at BNP Paribas has changed over time.
Is BNP Paribas SA Growing?
BNP Paribas SA saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 2.5% over the last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has BNP Paribas SA Been A Good Investment?
BNP Paribas SA has not done too badly by shareholders, with a total return of 8.9%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Jean-Laurent Bonnafe is paid around what is normal the leaders of larger companies.
We think many would like to see better growth. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling BNP Paribas shares (free trial).
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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