Emmanuel Le Cottier has been the CEO of Lexibook - Linguistic Electronic System Société anonyme (EPA:ALLEX) since 2006. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Emmanuel Le Cottier's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Lexibook - Linguistic Electronic System Société anonyme has a market cap of €7.7m, and reported total annual CEO compensation of €158k for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at €140k. We looked at a group of companies with market capitalizations under €179m, and the median CEO total compensation was €157k.
So Emmanuel Le Cottier 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.
The graphic below shows how CEO compensation at Lexibook - Linguistic Electronic System Société anonyme has changed from year to year.
Is Lexibook - Linguistic Electronic System Société anonyme Growing?
On average over the last three years, Lexibook - Linguistic Electronic System Société anonyme has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is down 20% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Lexibook - Linguistic Electronic System Société anonyme Been A Good Investment?
Since shareholders would have lost about 21% over three years, some Lexibook - Linguistic Electronic System Société anonyme shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Emmanuel Le Cottier is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shareholders may want to check for free if Lexibook - Linguistic Electronic System Société anonyme 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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