Does Veolia Environnement S.A.'s (EPA:VIE) CEO Salary Reflect Performance?
Antoine Frérot became the CEO of Veolia Environnement S.A. (EPA:VIE) in 2009. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. 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.
Check out our latest analysis for Veolia Environnement
How Does Antoine Frérot's Compensation Compare With Similar Sized Companies?
According to our data, Veolia Environnement S.A. has a market capitalization of €14b, and paid its CEO total annual compensation worth €2.9m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €950k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a group of companies with market caps over €7.2b, we found that their median CEO total compensation was €3.2m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Antoine Frérot receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Veolia Environnement has changed from year to year.
Is Veolia Environnement S.A. Growing?
Veolia Environnement S.A. has increased its earnings per share (EPS) by an average of 20% a year, over the last three years (using a line of best fit). Its revenue is up 7.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Veolia Environnement S.A. Been A Good Investment?
I think that the total shareholder return of 82%, over three years, would leave most Veolia Environnement S.A. shareholders smiling. 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...
Antoine Frérot is paid around what is normal the leaders of larger companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Veolia Environnement shares with their own money (free access).
If you want to buy a stock that is better than Veolia Environnement, this free list of high return, low debt companies is a great place to look.
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.
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