Dominique Leroy became the CEO of Proximus PLC (EBR:PROX) in 2014. 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 Dominique Leroy's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Proximus PLC has a market cap of €8.3b, and is paying total annual CEO compensation of €941k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €523k. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €812k.
That means Dominique Leroy 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.
You can see, below, how CEO compensation at Proximus has changed over time.
Is Proximus PLC Growing?
Over the last three years Proximus PLC has grown its earnings per share (EPS) by an average of 2.3% per year (using a line of best fit). In the last year, its revenue changed by just 0.07%.
I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.
Has Proximus PLC Been A Good Investment?
With a total shareholder return of 1.9% over three years, Proximus PLC has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Dominique Leroy is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Proximus.
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.
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