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Is Interparfums SA (EPA:ITP) Excessively Paying Its CEO?

Simply Wall St

Philippe Bénacin became the CEO of Interparfums SA (EPA:ITP) in 1989. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Interparfums

How Does Philippe Bénacin's Compensation Compare With Similar Sized Companies?

According to our data, Interparfums SA has a market capitalization of €1.7b, and paid its CEO total annual compensation worth €1.0m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €444k. When we examined a selection of companies with market caps ranging from €902m to €2.9b, we found the median CEO total compensation was €1.0m.

So Philippe Bénacin receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at Interparfums has changed over time.

ENXTPA:ITP CEO Compensation, December 4th 2019

Is Interparfums SA Growing?

On average over the last three years, Interparfums SA has grown earnings per share (EPS) by 14% each year (using a line of best fit). It achieved revenue growth of 10% over the 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. You might want to check this free visual report on analyst forecasts for future earnings.

Has Interparfums SA Been A Good Investment?

I think that the total shareholder return of 92%, over three years, would leave most Interparfums SA shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Remuneration for Philippe Bénacin is close enough to the median pay for a CEO of a similar sized 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. Whatever your view on compensation, you might want to check if insiders are buying or selling Interparfums 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.

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.

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. Thank you for reading.