Roger von der Weid has been the CEO of Lalique Group SA (VTX:LLQ) since 2006. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
How Does Roger von der Weid's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Lalique Group SA has a market cap of CHF272m, and reported total annual CEO compensation of €682k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €602k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CHF98m to CHF390m. The median total CEO compensation was CHF805k.
So Roger von der Weid is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Lalique Group has changed from year to year.
Is Lalique Group SA Growing?
Lalique Group SA has reduced its earnings per share by an average of 4.3% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 6.1%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Lalique Group SA Been A Good Investment?
Lalique Group SA has generated a total shareholder return of 18% 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.
Roger von der Weid is paid around the same as most CEOs of similar size companies.
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We're not saying the CEO pay is too generous, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Lalique Group (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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