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Is Aéroports de Paris SA (EPA:ADP) Excessively Paying Its CEO?

Simply Wall St

Augustin Pascal Pierre Louis de Romanet de Beaune became the CEO of Aéroports de Paris SA (EPA:ADP) in 2012. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for Aéroports de Paris

How Does Augustin Pascal Pierre Louis de Romanet de Beaune's Compensation Compare With Similar Sized Companies?

According to our data, Aéroports de Paris SA has a market capitalization of €16b, and pays its CEO total annual compensation worth €456k. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €350k. We looked at a group of companies with market capitalizations over €7.2b and the median CEO total compensation was €3.4m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.

A first glance this seems like a real positive for shareholders, since Augustin Pascal Pierre Louis de Romanet de Beaune is paid less than the average total compensation paid by other large companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Aéroports de Paris has changed over time.

ENXTPA:ADP CEO Compensation, July 24th 2019

Is Aéroports de Paris SA Growing?

On average over the last three years, Aéroports de Paris SA has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is up 24% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Aéroports de Paris SA Been A Good Investment?

Most shareholders would probably be pleased with Aéroports de Paris SA for providing a total return of 75% 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.

In Summary...

It looks like Aéroports de Paris SA pays its CEO less than the average at large companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Augustin Pascal Pierre Louis de Romanet de Beaune deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Aéroports de Paris insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.