Yann Treal became the CEO of Sodifrance SA (EPA:SOA) in 2016. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Yann Treal's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Sodifrance SA has a market cap of €62m, and reported total annual CEO compensation of €230k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €180k. We examined a group of similar sized companies, with market capitalizations of below €181m. The median CEO total compensation in that group is €281k.
That means Yann Treal 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 Sodifrance has changed over time.
Is Sodifrance SA Growing?
Over the last three years Sodifrance SA has shrunk its earnings per share by an average of 62% per year (measured with a line of best fit). Its revenue is down 2.2% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Sodifrance SA Been A Good Investment?
With a three year total loss of 7.3%, Sodifrance SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Yann Treal is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sodifrance.
If you want to buy a stock that is better than Sodifrance, this free list of high return, low debt companies is a great place to look.
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