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In 2016 Isabelle Kocher was appointed CEO of ENGIE SA (EPA:ENGI). This analysis aims first to contrast CEO compensation with other large companies. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Isabelle Kocher's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that ENGIE SA has a market cap of €32b, and is paying total annual CEO compensation of €2.8m. (This number is for the twelve months until December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at €1.0m. We looked at a group of companies with market capitalizations over €7.1b and the median CEO total compensation was €3.4m. 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 Isabelle Kocher 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 ENGIE has changed over time.
Is ENGIE SA Growing?
ENGIE SA has increased its earnings per share (EPS) by an average of 117% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.7% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has ENGIE SA Been A Good Investment?
With a total shareholder return of 18% over three years, ENGIE SA shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Isabelle Kocher is paid around what is normal the leaders of larger companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ENGIE.
If you want to buy a stock that is better than ENGIE, this free list of high return, low debt companies is a great place to look.
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 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. Thank you for reading.