Martin Bouygues has been the CEO of Bouygues SA (EPA:EN) since 1989. This analysis aims first to contrast CEO compensation with other large companies. 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.
How Does Martin Bouygues's Compensation Compare With Similar Sized Companies?
According to our data, Bouygues SA has a market capitalization of €12b, and pays its CEO total annual compensation worth €2.8m. (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 €920k. 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.
So Martin Bouygues is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Bouygues, below.
Is Bouygues SA Growing?
On average over the last three years, Bouygues SA has grown earnings per share (EPS) by 32% each year (using a line of best fit). Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bouygues SA Been A Good Investment?
Boasting a total shareholder return of 44% over three years, Bouygues SA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Martin Bouygues is close enough to the median pay for a CEO of a large company .
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Bouygues shares with their own money (free access).
If you want to buy a stock that is better than Bouygues, this free list of high return, low debt companies is a great place to look.
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