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Is Vicat SA (EPA:VCT) Overpaying Its CEO?

Guy Sidos has been the CEO of Vicat SA (EPA:VCT) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Vicat

How Does Guy Sidos’s Compensation Compare With Similar Sized Companies?

According to our data, Vicat SA has a market capitalization of €2.0b, and pays its CEO total annual compensation worth €872k. That’s just a smallish increase of 3.8% on last year. We looked at a group of companies with market capitalizations from €879m to €2.8b, and the median CEO compensation was €993k.

That means Guy Sidos receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Vicat, below.

ENXTPA:VCT CEO Compensation October 31st 18

Is Vicat SA Growing?

Over the last three years Vicat SA has grown its earnings per share (EPS) by an average of 10% per year. It achieved revenue growth of 5.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Vicat SA Been A Good Investment?

Since shareholders would have lost about 16% over three years, some Vicat SA shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Guy Sidos is paid around the same as most CEOs of similar size companies.

We’d say the company can boast of its EPS growth, but it’s disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Vicat SA insiders are buying or selling shares.

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 editorial-team@simplywallst.com.