Rodolphe Belmer has been the CEO of Eutelsat Communications S.A. (EPA:ETL) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Rodolphe Belmer’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Eutelsat Communications S.A. has a market cap of €4.2b, and is paying total annual CEO compensation of €2.1m. (This is based on the year to 2018). That’s just a smallish increase of 1.9% on last year. While we always look at total compensation first, we note that the salary component is less, at €650k. We examined companies with market caps from €3.5b to €11b, and discovered that the median CEO compensation of that group was €2.1m.
So Rodolphe Belmer receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Eutelsat Communications has changed over time.
Is Eutelsat Communications S.A. Growing?
Eutelsat Communications S.A. has reduced its earnings per share by an average of 8.1% a year, over the last three years. In the last year, its revenue is down -4.7%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Eutelsat Communications S.A. Been A Good Investment?
Since shareholders would have lost about 23% over three years, some Eutelsat Communications S.A. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Rodolphe Belmer is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don’t think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Eutelsat Communications.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 email@example.com.