Does Rémy Cointreau SA's (EPA:RCO) CEO Salary Reflect Performance?
In 2015 Valérie Chapoulaud-Floquet was appointed CEO of Rémy Cointreau SA (EPA:RCO). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for Rémy Cointreau
How Does Valérie Chapoulaud-Floquet's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Rémy Cointreau SA has a market cap of €5.9b, and is paying total annual CEO compensation of €2.1m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €697k. When we examined a selection of companies with market caps ranging from €3.5b to €11b, we found the median CEO total compensation was €2.0m.
That means Valérie Chapoulaud-Floquet receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Rémy Cointreau has changed over time.
Is Rémy Cointreau SA Growing?
On average over the last three years, Rémy Cointreau SA has grown earnings per share (EPS) by 15% each year (using a line of best fit). It saw its revenue drop -1.4% over the last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Rémy Cointreau SA Been A Good Investment?
Most shareholders would probably be pleased with Rémy Cointreau SA for providing a total return of 80% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Remuneration for Valérie Chapoulaud-Floquet is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rémy Cointreau.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.
