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In 2015 Philippe Brassac was appointed CEO of Crédit Agricole S.A. (EPA:ACA). First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Philippe Brassac's Compensation Compare With Similar Sized Companies?
Our data indicates that Crédit Agricole S.A. is worth €35b, and total annual CEO compensation is €2.2m. (This is based on the year to December 2018). That's a notable increase of 9.6% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.0m. We took a group of companies with market capitalizations over €7.1b, and calculated the median CEO total compensation to be €2.9m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Philippe Brassac receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Crédit Agricole has changed over time.
Is Crédit Agricole S.A. Growing?
Over the last three years Crédit Agricole S.A. has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). Its revenue is up 8.9% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Crédit Agricole S.A. Been A Good Investment?
Most shareholders would probably be pleased with Crédit Agricole S.A. for providing a total return of 55% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Philippe Brassac is paid around what is normal the leaders of larger companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Crédit Agricole (free visualization of insider trades).
Important note: Crédit Agricole may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.