Jean-Michel Aulas became the CEO of Olympique Lyonnais Groupe SA (EPA:OLG) in 1999. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Jean-Michel Aulas’s Compensation Compare With Similar Sized Companies?
Our data indicates that Olympique Lyonnais Groupe SA is worth €160m, and total annual CEO compensation is €1.7m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at €900k. We looked at a group of companies with market capitalizations from €87m to €349m, and the median CEO compensation was €356k.
As you can see, Jean-Michel Aulas is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Olympique Lyonnais Groupe SA is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Olympique Lyonnais Groupe has changed from year to year.
Is Olympique Lyonnais Groupe SA Growing?
On average over the last three years, Olympique Lyonnais Groupe SA has grown earnings per share (EPS) by 92% each year. In the last year, its revenue is down -17%.
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 Olympique Lyonnais Groupe SA Been A Good Investment?
I think that the total shareholder return of 37%, over three years, would leave most Olympique Lyonnais Groupe SA shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Olympique Lyonnais Groupe SA, and compared it to remuneration at a group of similar sized companies. 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. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Olympique Lyonnais Groupe shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.