In 2013 JP Tricoire was appointed CEO of Schneider Electric SE (EPA:SU). This analysis aims first to contrast CEO compensation with other large companies. Then we’ll look at a snap shot of the business growth. 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 JP Tricoire’s Compensation Compare With Similar Sized Companies?
According to our data, Schneider Electric SE has a market capitalization of €35b, and pays its CEO total annual compensation worth €6.6m. That’s a notable increase of 17% on last year. We looked at a group of companies with market capitalizations over €7.0b and the median CEO compensation was €3.6m.
As you can see, JP Tricoire is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Schneider Electric SE is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Schneider Electric, below.
Is Schneider Electric SE Growing?
Schneider Electric SE has increased its earnings per share (EPS) by an average of 17% a year, over the last three years Revenue was pretty flat on 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.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Schneider Electric SE Been A Good Investment?
Schneider Electric SE has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at Schneider Electric SE with the amount paid at other large 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. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.