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Is Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco’s (EPA:BAIN) CEO Paid Enough Relative To Peers?

Ricardo Crouch

In 2013 Jean-Luc Biamonti was appointed CEO of Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco (EPA:BAIN). 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.

See our latest analysis for Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco

How Does Jean-Luc Biamonti’s Compensation Compare With Similar Sized Companies?

According to our data, Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco has a market capitalization of €1.1b, and pays its CEO total annual compensation worth €565k. (This is based on the year to 2018). Notably, the salary of €550k is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from €877m to €2.8b, we found the median CEO compensation was €1.1m.

A first glance this seems like a real positive for shareholders, since Jean-Luc Biamonti is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco has changed from year to year.

ENXTPA:BAIN CEO Compensation January 7th 19

Is Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco Growing?

Over the last three years Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco has grown its earnings per share (EPS) by an average of 57% per year (using a line of best fit). In the last year, its revenue is up 11%.

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.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco Been A Good Investment?

Most shareholders would probably be pleased with Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco for providing a total return of 34% 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 appears that Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Jean-Luc Biamonti deserves a raise!

It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco shares (free trial).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 editorial-team@simplywallst.com.