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Is JCDecaux SA's (EPA:DEC) CEO Being Overpaid?

Simply Wall St

Jean-François Decaux is the CEO of JCDecaux SA (EPA:DEC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for JCDecaux

How Does Jean-François Decaux's Compensation Compare With Similar Sized Companies?

Our data indicates that JCDecaux SA is worth €5.5b, and total annual CEO compensation is €2.0m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at €1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.6b to €11b. The median total CEO compensation was €2.4m.

That means Jean-François Decaux receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at JCDecaux has changed from year to year.

ENXTPA:DEC CEO Compensation, August 20th 2019

Is JCDecaux SA Growing?

Over the last three years, JCDecaux SA has not seen its earnings per share change much, though there is a positive trend. Its revenue is up 11% over last year.

I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.

Has JCDecaux SA Been A Good Investment?

Since shareholders would have lost about 12% over three years, some JCDecaux SA shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Jean-François Decaux is close enough to the median pay for a CEO of a similar sized company .

The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if JCDecaux insiders are buying or selling shares.

If you want to buy a stock that is better than JCDecaux, 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.