Bernard Charlès became the CEO of Dassault Systèmes SE (EPA:DSY) in 2002. First, this article will compare CEO compensation with compensation at other large 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 Bernard Charlès's Compensation Compare With Similar Sized Companies?
Our data indicates that Dassault Systèmes SE is worth €40b, and total annual CEO compensation was reported as €23m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €1.4m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations over €7.2b, and calculated the median CEO total compensation to be €3.2m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
As you can see, Bernard Charlès is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Dassault Systèmes SE is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Dassault Systèmes has changed over time.
Is Dassault Systèmes SE Growing?
On average over the last three years, Dassault Systèmes SE has grown earnings per share (EPS) by 12% each year (using a line of best fit). In the last year, its revenue is up 15%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Dassault Systèmes SE Been A Good Investment?
Most shareholders would probably be pleased with Dassault Systèmes SE for providing a total return of 116% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at Dassault Systèmes SE with the amount paid at other large 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. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Dassault Systèmes insiders are buying or selling shares.
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 firstname.lastname@example.org. 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.
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