Denis Thébaud is the CEO of Innelec Multimédia SA (EPA:INN). 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 - 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.
How Does Denis Thébaud's Compensation Compare With Similar Sized Companies?
Our data indicates that Innelec Multimédia SA is worth €14m, and total annual CEO compensation was reported as €157k for the year to March 2019. Notably, the salary of €151k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below €180m. The median CEO total compensation in that group is €157k.
So Denis Thébaud is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Innelec Multimédia, below.
Is Innelec Multimédia SA Growing?
Over the last three years Innelec Multimédia SA has grown its earnings per share (EPS) by an average of 66% per year (using a line of best fit). In the last year, its revenue is up 7.7%.
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 Innelec Multimédia SA Been A Good Investment?
Innelec Multimédia SA has generated a total shareholder return of 30% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Denis Thébaud is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Innelec Multimédia (free visualization of insider trades).
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 firstname.lastname@example.org. 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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