Pierre-André de Chalendar became the CEO of Compagnie de Saint-Gobain S.A. (EPA:SGO) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Pierre-André de Chalendar's Compensation Compare With Similar Sized Companies?
Our data indicates that Compagnie de Saint-Gobain S.A. is worth €20b, and total annual CEO compensation is €3.5m. (This figure is for the year to December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at €1.2m. We took a group of companies with market capitalizations over €7.2b, and calculated the median CEO total compensation to be €2.9m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means Pierre-André de Chalendar receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Compagnie de Saint-Gobain has changed from year to year.
Is Compagnie de Saint-Gobain S.A. Growing?
Compagnie de Saint-Gobain S.A. has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.4%.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Compagnie de Saint-Gobain S.A. Been A Good Investment?
With a three year total loss of 1.3%, Compagnie de Saint-Gobain S.A. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Pierre-André de Chalendar is paid around what is normal the leaders of larger companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Compagnie de Saint-Gobain shares (free trial).
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.
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If you spot an error that warrants correction, please contact the editor at email@example.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.