How Should Investors React To Poxel SA's (EPA:POXEL) CEO Pay?
The CEO of Poxel SA (EPA:POXEL) is Thomas Kuhn. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Poxel
How Does Thomas Kuhn's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Poxel SA has a market cap of €191m, and reported total annual CEO compensation of €433k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €206k. We looked at a group of companies with market capitalizations from €90m to €361m, and the median CEO total compensation was €272k.
It would therefore appear that Poxel SA pays Thomas Kuhn more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Poxel has changed over time.
Is Poxel SA Growing?
Over the last three years Poxel SA has grown its earnings per share (EPS) by an average of 80% per year (using a line of best fit). It achieved revenue growth of 41% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Poxel SA Been A Good Investment?
Poxel SA has generated a total shareholder return of 13% 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.
In Summary...
We compared total CEO remuneration at Poxel SA with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Poxel (free visualization of insider trades).
If you want to buy a stock that is better than Poxel, this free list of high return, low debt companies is a great place to look.
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.
