Alain Tur became the CEO of AST Groupe (EPA:ASP) in 2000. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alain Tur's Compensation Compare With Similar Sized Companies?
Our data indicates that AST Groupe is worth €39m, and total annual CEO compensation was reported as €218k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth €208k. We looked at a group of companies with market capitalizations under €182m, and the median CEO total compensation was €133k.
As you can see, Alain Tur is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AST Groupe is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at AST Groupe has changed over time.
Is AST Groupe Growing?
Over the last three years AST Groupe has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). In the last year, its revenue is down 1.9%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has AST Groupe Been A Good Investment?
Given the total loss of 18% over three years, many shareholders in AST Groupe are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at AST Groupe with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying AST Groupe shares with their own money (free access).
If you want to buy a stock that is better than AST Groupe, this free list of high return, low debt companies is a great place to look.
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