Frédéric Sebag is the CEO of Groupe Open (EPA:OPN). 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Frédéric Sebag's Compensation Compare With Similar Sized Companies?
Our data indicates that Groupe Open is worth €122m, and total annual CEO compensation is €385k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at €250k. We examined a group of similar sized companies, with market capitalizations of below €180m. The median CEO total compensation in that group is €120k.
Thus we can conclude that Frédéric Sebag receives more in total compensation than the median of a group of companies in the same market, and of similar size to Groupe Open. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Groupe Open, below.
Is Groupe Open Growing?
On average over the last three years, Groupe Open has grown earnings per share (EPS) by 3.9% each year (using a line of best fit). In the last year, its revenue is up 3.2%.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Groupe Open Been A Good Investment?
Since shareholders would have lost about 20% over three years, some Groupe Open shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Groupe Open with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if Groupe Open insiders are buying or selling shares.
Important note: Groupe Open 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.
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