Patrick Koller became the CEO of Faurecia S.E. (EPA:EO) in 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 Patrick Koller's Compensation Compare With Similar Sized Companies?
According to our data, Faurecia S.E. has a market capitalization of €6.5b, and paid its CEO total annual compensation worth €3.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €825k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from €3.6b to €11b, and discovered that the median CEO total compensation of that group was €2.6m.
That means Patrick Koller receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Faurecia, below.
Is Faurecia S.E. Growing?
Over the last three years Faurecia S.E. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Faurecia S.E. Been A Good Investment?
Faurecia S.E. has served shareholders reasonably well, with a total return of 28% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Patrick Koller is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Faurecia (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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