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Is La Société Industrielle et Financière de l'Artois's (EPA:ARTO) CEO Paid At A Competitive Rate?

Simply Wall St

François Laroze is the CEO of La Société Industrielle et Financière de l'Artois (EPA:ARTO). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for La Société Industrielle et Financière de l'Artois

How Does François Laroze's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that La Société Industrielle et Financière de l'Artois has a market cap of €1.3b, and is paying total annual CEO compensation of €960k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at €421k. We examined companies with market caps from €909m to €2.9b, and discovered that the median CEO total compensation of that group was €1.2m.

So François Laroze is paid around the average of 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.

The graphic below shows how CEO compensation at La Société Industrielle et Financière de l'Artois has changed from year to year.

ENXTPA:ARTO CEO Compensation, September 17th 2019

Is La Société Industrielle et Financière de l'Artois Growing?

Over the last three years La Société Industrielle et Financière de l'Artois has shrunk its earnings per share by an average of 6.1% per year (measured with a line of best fit). In the last year, its revenue changed by just 1.0%.

Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has La Société Industrielle et Financière de l'Artois Been A Good Investment?

With a total shareholder return of 19% over three years, La Société Industrielle et Financière de l'Artois shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

François Laroze is paid around the same as most CEOs of similar size companies.

The company isn't growing earnings per share, and nor have the total returns inspired us. We do not think the CEO pay is a problem, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. Whatever your view on compensation, you might want to check if insiders are buying or selling La Société Industrielle et Financière de l'Artois shares (free trial).

If you want to buy a stock that is better than La Société Industrielle et Financière de l'Artois, 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.