In 1989 Martin Bouygues was appointed CEO of Bouygues SA (EPA:EN). This analysis aims first to contrast CEO compensation with other large companies. Then we’ll look at a snap shot of the business growth. 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.
How Does Martin Bouygues’s Compensation Compare With Similar Sized Companies?
According to our data, Bouygues SA has a market capitalization of €13b, and pays its CEO total annual compensation worth €2.7m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €920k. We looked at a group of companies with market capitalizations over €7.1b and the median CEO compensation was €3.5m.
That means Martin Bouygues receives fairly typical remuneration for the CEO of a large company. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Bouygues has changed from year to year.
Is Bouygues SA Growing?
Bouygues SA has increased its earnings per share (EPS) by an average of 38% a year, over the last three years In the last year, its revenue is up 6.0%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Bouygues SA Been A Good Investment?
Bouygues SA has served shareholders reasonably well, with a total return of 11% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Martin Bouygues is paid around the same as most CEOs of large companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Bouygues insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.