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Does Fermentalg Société Anonyme's (EPA:FALG) CEO Pay Matter?

Simply Wall St

In 2016 Philippe Lavielle was appointed CEO of Fermentalg Société Anonyme (EPA:FALG). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Fermentalg Société Anonyme

How Does Philippe Lavielle's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Fermentalg Société Anonyme has a market cap of €34m, and reported total annual CEO compensation of €359k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €250k. We looked at a group of companies with market capitalizations under €179m, and the median CEO total compensation was €281k.

That means Philippe Lavielle receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Fermentalg Société Anonyme has changed from year to year.

ENXTPA:FALG CEO Compensation, January 16th 2020

Is Fermentalg Société Anonyme Growing?

On average over the last three years, Fermentalg Société Anonyme has grown earnings per share (EPS) by 2.8% each year (using a line of best fit). In the last year, its revenue is up 38%.

It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. It could be important to check this free visual depiction of what analysts expect for the future.

Has Fermentalg Société Anonyme Been A Good Investment?

With a three year total loss of 31%, Fermentalg Société Anonyme would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Philippe Lavielle is paid around what is normal the leaders of comparable size companies.

The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fermentalg Société Anonyme.

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.

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