How Much is Signaux Girod S.A.'s (EPA:GIRO) CEO Getting Paid?
Claude Girod became the CEO of Signaux Girod S.A. (EPA:GIRO) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Signaux Girod
How Does Claude Girod's Compensation Compare With Similar Sized Companies?
According to our data, Signaux Girod S.A. has a market capitalization of €10m, and paid its CEO total annual compensation worth €176k over the year to September 2019. While we always look at total compensation first, we note that the salary component is less, at €153k. We looked at a group of companies with market capitalizations under €185m, and the median CEO total compensation was €290k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Signaux Girod stands. Talking in terms of the sector, salary represented approximately 48% of total compensation out of all the companies we analysed, while other remuneration made up 52% of the pie. Signaux Girod is paying a higher share of its remuneration through a salary in comparison to the overall industry.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at Signaux Girod has changed from year to year.
Is Signaux Girod S.A. Growing?
Signaux Girod S.A. has reduced its earnings per share by an average of 79% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 2.4%.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Signaux Girod S.A. Been A Good Investment?
With a three year total loss of 30%, Signaux Girod S.A. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It looks like Signaux Girod S.A. pays its CEO less than similar sized companies.
Claude Girod is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for Signaux Girod that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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