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How Should Investors Feel About AB Science S.A.'s (EPA:AB) CEO Pay?

Simply Wall St

Alain Moussy became the CEO of AB Science S.A. (EPA:AB) in 2001. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for AB Science

How Does Alain Moussy's Compensation Compare With Similar Sized Companies?

According to our data, AB Science S.A. has a market capitalization of €294m, and paid its CEO total annual compensation worth €482k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth €482k. We looked at a group of companies with market capitalizations from €181m to €726m, and the median CEO total compensation was €433k.

So Alain Moussy 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 AB Science has changed over time.

ENXTPA:AB CEO Compensation, January 29th 2020

Is AB Science S.A. Growing?

On average over the last three years, AB Science S.A. has grown earnings per share (EPS) by 4.6% each year (using a line of best fit). In the last year, its revenue is down 8.4%.

I generally like to see a little revenue growth, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has AB Science S.A. Been A Good Investment?

Given the total loss of 50% over three years, many shareholders in AB Science S.A. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Alain Moussy is paid around what is normal the leaders of comparable size companies.

The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AB Science (free visualization of insider trades).

If you want to buy a stock that is better than AB Science, this free list of high return, low debt companies is a great place to look.

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.