Does Groupe LDLC société anonyme's (EPA:ALLDL) CEO Salary Reflect Performance?
The CEO of Groupe LDLC société anonyme (EPA:ALLDL) is Olivier Villemonte de la Clergerie. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
View our latest analysis for Groupe LDLC société anonyme
How Does Olivier Villemonte de la Clergerie's Compensation Compare With Similar Sized Companies?
Our data indicates that Groupe LDLC société anonyme is worth €74m, and total annual CEO compensation was reported as €234k for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €185k. We examined a group of similar sized companies, with market capitalizations of below €185m. The median CEO total compensation in that group is €291k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 75% of total compensation represents salary and 25% is other remuneration. Groupe LDLC société anonyme is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
So Olivier Villemonte de la Clergerie 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 a visual representation of the CEO compensation at Groupe LDLC société anonyme, below.
Is Groupe LDLC société anonyme Growing?
On average over the last three years, Groupe LDLC société anonyme has shrunk earnings per share by 58% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has Groupe LDLC société anonyme Been A Good Investment?
Given the total loss of 51% over three years, many shareholders in Groupe LDLC société anonyme are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Olivier Villemonte de la Clergerie is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. On another note, Groupe LDLC société anonyme has 4 warning signs (and 2 which make us uncomfortable) we think you should know about.
If you want to buy a stock that is better than Groupe LDLC société anonyme, this free list of high return, low debt companies is a great place to look.
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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