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Is Groupe JAJ's (EPA:GJAJ) CEO Paid At A Competitive Rate?

Simply Wall St

The CEO of Groupe JAJ (EPA:GJAJ) is Bruno Dauman. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

See our latest analysis for Groupe JAJ

How Does Bruno Dauman's Compensation Compare With Similar Sized Companies?

According to our data, Groupe JAJ has a market capitalization of €4.4m, and paid its CEO total annual compensation worth €256k over the year to March 2019. Notably, the salary of €251k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below €181m, and calculated the median CEO total compensation to be €289k.

That means Bruno Dauman receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

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

ENXTPA:GJAJ CEO Compensation, December 22nd 2019

Is Groupe JAJ Growing?

Groupe JAJ has reduced its earnings per share by an average of 18% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 6.5% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Groupe JAJ Been A Good Investment?

Groupe JAJ has generated a total shareholder return of 0.8% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Bruno Dauman is paid around the same as most CEOs of similar size companies.

We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn't say the CEO pay is too high, but it's probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Groupe JAJ.

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.

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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