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In 2011 Yves Le Masne was appointed CEO of ORPEA Société Anonyme (EPA:ORP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Yves Le Masne’s Compensation Compare With Similar Sized Companies?
Our data indicates that ORPEA Société Anonyme is worth €5.6b, and total annual CEO compensation is €2.2m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at €720k. When we examined a selection of companies with market caps ranging from €3.5b to €10b, we found the median CEO compensation was €2.1m.
So Yves Le Masne receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at ORPEA Société Anonyme, below.
Is ORPEA Société Anonyme Growing?
ORPEA Société Anonyme has increased its earnings per share (EPS) by an average of 7.3% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 10%.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. Although we’ll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.
Has ORPEA Société Anonyme Been A Good Investment?
Most shareholders would probably be pleased with ORPEA Société Anonyme for providing a total return of 35% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Yves Le Masne is paid around what is normal the leaders of comparable size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I’d venture that the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling ORPEA Société Anonyme shares (free trial).
If you want to buy a stock that is better than ORPEA Société Anonyme, this free list of high return, low debt companies is a great place to look.
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 email@example.com.