Ludovic Lastennet became the CEO of Implanet S.A. (EPA:ALIMP) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
How Does Ludovic Lastennet's Compensation Compare With Similar Sized Companies?
According to our data, Implanet S.A. has a market capitalization of €4.1m, and paid its CEO total annual compensation worth €294k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €217k. We took a group of companies with market capitalizations below €181m, and calculated the median CEO total compensation to be €150k.
Thus we can conclude that Ludovic Lastennet receives more in total compensation than the median of a group of companies in the same market, and of similar size to Implanet S.A.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Implanet has changed from year to year.
Is Implanet S.A. Growing?
Implanet S.A. has increased its earnings per share (EPS) by an average of 48% a year, over the last three years (using a line of best fit). It saw its revenue drop 6.1% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has Implanet S.A. Been A Good Investment?
Given the total loss of 90% over three years, many shareholders in Implanet S.A. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Implanet S.A. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Implanet insiders are buying or selling shares.
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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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.