Does Ymagis Société Anonyme's (EPA:MAGIS) CEO Pay Matter?
Jean-Marc Mizrahi is the CEO of Ymagis Société Anonyme (EPA:MAGIS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Ymagis Société Anonyme
How Does Jean-Marc Mizrahi's Compensation Compare With Similar Sized Companies?
According to our data, Ymagis Société Anonyme has a market capitalization of €12m, and paid its CEO total annual compensation worth €120k over the year to December 2018. Notably, the salary of €120k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below €180m, and calculated the median CEO total compensation to be €289k.
A first glance this seems like a real positive for shareholders, since Jean-Marc Mizrahi is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Ymagis Société Anonyme has changed from year to year.
Is Ymagis Société Anonyme Growing?
Ymagis Société Anonyme has reduced its earnings per share by an average of 35% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 7.4% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Ymagis Société Anonyme Been A Good Investment?
With a three year total loss of 84%, Ymagis Société Anonyme would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Ymagis Société Anonyme is currently paying its CEO below what is normal for companies of its size.
Shareholders should note that compensation for Jean-Marc Mizrahi is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ymagis Société Anonyme.
If you want to buy a stock that is better than Ymagis Société Anonyme, 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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