How Should Investors Feel About Euronext N.V.'s (EPA:ENX) CEO Pay?
Stéphane Boujnah has been the CEO of Euronext N.V. (EPA:ENX) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Euronext
How Does Stéphane Boujnah's Compensation Compare With Similar Sized Companies?
Our data indicates that Euronext N.V. is worth €5.0b, and total annual CEO compensation was reported as €2.3m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €776k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.7b to €11b. The median total CEO compensation was €2.3m.
That means Stéphane Boujnah receives fairly typical remuneration for the CEO of a company that size. 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 Euronext has changed from year to year.
Is Euronext N.V. Growing?
Over the last three years Euronext N.V. has grown its earnings per share (EPS) by an average of 7.4% per year (using a line of best fit). Its revenue is up 7.8% over last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Euronext N.V. Been A Good Investment?
Most shareholders would probably be pleased with Euronext N.V. for providing a total return of 108% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Stéphane Boujnah is paid around the same as most CEOs of similar size companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if Euronext insiders are buying or selling shares.
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.
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.
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. Thank you for reading.
