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Does Burelle SA's (EPA:BUR) CEO Salary Reflect Performance?

Simply Wall St

Laurent Burelle is the CEO of Burelle SA (EPA:BUR). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Burelle

How Does Laurent Burelle's Compensation Compare With Similar Sized Companies?

According to our data, Burelle SA has a market capitalization of €1.4b, and paid its CEO total annual compensation worth €5.1m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €90k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from €902m to €2.9b, we found the median CEO total compensation was €1.0m.

As you can see, Laurent Burelle is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Burelle SA is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Burelle, below.

ENXTPA:BUR CEO Compensation, December 25th 2019

Is Burelle SA Growing?

Over the last three years Burelle SA has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). In the last year, its revenue is up 31%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Burelle SA Been A Good Investment?

Since shareholders would have lost about 13% over three years, some Burelle SA shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Burelle SA, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Burelle (free visualization of insider trades).

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.