In 2000 Thierry de La d’Artaise was appointed CEO of SEB SA (EPA:SK). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Thierry de La d’Artaise’s Compensation Compare With Similar Sized Companies?
Our data indicates that SEB SA is worth €5.5b, and total annual CEO compensation is €4.8m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at €900k. We looked at a group of companies with market capitalizations from €3.5b to €10b, and the median CEO compensation was €2.1m.
It would therefore appear that SEB SA pays Thierry de La d’Artaise more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at SEB has changed over time.
Is SEB SA Growing?
Over the last three years SEB SA has grown its earnings per share (EPS) by an average of 25% per year. It achieved revenue growth of 14% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has SEB SA Been A Good Investment?
With a total shareholder return of 27% over three years, SEB SA shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at SEB SA with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling SEB shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.