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Is Groupe CRIT SA (EPA:CEN) Overpaying Its CEO?

Simply Wall St

Claude Guedj is the CEO of Groupe CRIT SA (EPA:CEN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

Check out our latest analysis for Groupe CRIT

How Does Claude Guedj's Compensation Compare With Similar Sized Companies?

According to our data, Groupe CRIT SA has a market capitalization of €702m, and pays its CEO total annual compensation worth €240k. (This figure is for the year to December 2018). Notably, the salary of €240k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €360m to €1.4b. The median total CEO compensation was €615k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

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

ENXTPA:CEN CEO Compensation, August 17th 2019

Is Groupe CRIT SA Growing?

Groupe CRIT SA has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.

Has Groupe CRIT SA Been A Good Investment?

With a total shareholder return of 14% over three years, Groupe CRIT SA shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It appears that Groupe CRIT SA remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Claude Guedj is overcompensated.

It's good to see reasonable payment of the CEO, even while the business improves. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Groupe CRIT.

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.