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Gil Beyen became the CEO of ERYTECH Pharma S.A. (EPA:ERYP) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Gil Beyen's Compensation Compare With Similar Sized Companies?
According to our data, ERYTECH Pharma S.A. has a market capitalization of €111m, and paid its CEO total annual compensation worth €657k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €345k. We took a group of companies with market capitalizations below €180m, and calculated the median CEO total compensation to be €281k.
Thus we can conclude that Gil Beyen receives more in total compensation than the median of a group of companies in the same market, and of similar size to ERYTECH Pharma S.A.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at ERYTECH Pharma has changed from year to year.
Is ERYTECH Pharma S.A. Growing?
Over the last three years ERYTECH Pharma S.A. has grown its earnings per share (EPS) by an average of 1.4% per year (using a line of best fit). In the last year, its revenue is up 81%.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. I wouldn't say this is necessarily top notch growth, but it is certainly promising. You might want to check this free visual report on analyst forecasts for future earnings.
Has ERYTECH Pharma S.A. Been A Good Investment?
With a three year total loss of 52%, ERYTECH Pharma S.A. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount ERYTECH Pharma S.A. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. So you may want to check if insiders are buying ERYTECH Pharma shares with their own money (free access).
Important note: ERYTECH Pharma 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.
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.
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