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Is Fonciere Atland's (EPA:FATL) CEO Salary Justified?

Simply Wall St

Georges Rocchietta is the CEO of Fonciere Atland (EPA:FATL). First, this article will compare CEO compensation with compensation at similar sized 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Fonciere Atland

How Does Georges Rocchietta's Compensation Compare With Similar Sized Companies?

Our data indicates that Fonciere Atland is worth €89m, and total annual CEO compensation is €330k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €100k. We took a group of companies with market capitalizations below €179m, and calculated the median CEO total compensation to be €113k.

Thus we can conclude that Georges Rocchietta receives more in total compensation than the median of a group of companies in the same market, and of similar size to Fonciere Atland. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Fonciere Atland, below.

ENXTPA:FATL CEO Compensation, August 7th 2019

Is Fonciere Atland Growing?

Fonciere Atland has increased its earnings per share (EPS) by an average of 3.5% a year, over the last three years (using a line of best fit). It achieved revenue growth of 13% over the last year.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Fonciere Atland Been A Good Investment?

Most shareholders would probably be pleased with Fonciere Atland for providing a total return of 126% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Fonciere Atland, 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.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Fonciere Atland shares (free trial).

If you want to buy a stock that is better than Fonciere Atland, this free list of high return, low debt companies is a great place to look.

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.