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Is Thales S.A.'s (EPA:HO) CEO Pay Fair?

Simply Wall St

Patrice Caine has been the CEO of Thales S.A. (EPA:HO) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Thales

How Does Patrice Caine's Compensation Compare With Similar Sized Companies?

According to our data, Thales S.A. has a market capitalization of €18b, and paid its CEO total annual compensation worth €1.9m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €700k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations over €7.3b and the median CEO total compensation was €3.2m. 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 Patrice Caine is paid less than the average total compensation paid by other large companies. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Thales has changed from year to year.

ENXTPA:HO CEO Compensation, November 13th 2019

Is Thales S.A. Growing?

Over the last three years Thales S.A. has grown its earnings per share (EPS) by an average of 4.1% per year (using a line of best fit). Its revenue is up 6.6% over last year.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Thales S.A. Been A Good Investment?

Thales S.A. has not done too badly by shareholders, with a total return of 0.7%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

It looks like Thales S.A. pays its CEO less than the average at large companies.

Patrice Caine is paid less than what is normal at large companies, and but overall performance has left me uninspired. However I do not find the CEO compensation to be concerning. Shareholders may want to check for free if Thales 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.