Thierry de La d'Artaise became the CEO of SEB SA (EPA:SK) in 2000. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Thierry de La d'Artaise's Compensation Compare With Similar Sized Companies?
According to our data, SEB SA has a market capitalization of €6.7b, and paid its CEO total annual compensation worth €4.8m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €900k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €2.3m.
As you can see, Thierry de La d'Artaise is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean SEB SA is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at SEB, below.
Is SEB SA Growing?
On average over the last three years, SEB SA has grown earnings per share (EPS) by 23% each year (using a line of best fit). It achieved revenue growth of 8.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has SEB SA Been A Good Investment?
SEB SA has not done too badly by shareholders, with a total return of 3.9%, over three years. 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.
We compared the total CEO remuneration paid by SEB SA, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SEB (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.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.