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Is Eiffage SA's (EPA:FGR) CEO Overpaid Relative To Its Peers?

Simply Wall St

In 2016 Benoit de Ruffray was appointed CEO of Eiffage SA (EPA:FGR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Eiffage

How Does Benoit de Ruffray's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Eiffage SA has a market cap of €8.8b, and is paying total annual CEO compensation of €3.8m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €900k. We took a group of companies with market capitalizations over €7.2b, and calculated the median CEO total compensation to be €3.4m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

That means Benoit de Ruffray receives fairly typical remuneration for the CEO of a large company. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Eiffage has changed from year to year.

ENXTPA:FGR CEO Compensation, August 18th 2019

Is Eiffage SA Growing?

Eiffage SA has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). Its revenue is up 9.9% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Eiffage SA Been A Good Investment?

I think that the total shareholder return of 37%, over three years, would leave most Eiffage SA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Benoit de Ruffray is paid around what is normal the leaders of larger companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. 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 Eiffage shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.