Why Korian's (EPA:KORI) CEO Pay Matters To You
In 2016 Sophie Boissard was appointed CEO of Korian (EPA:KORI). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Korian
How Does Sophie Boissard's Compensation Compare With Similar Sized Companies?
According to our data, Korian has a market capitalization of €3.5b, and paid its CEO total annual compensation worth €1.0m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €450k. We looked at a group of companies with market capitalizations from €1.8b to €5.7b, and the median CEO total compensation was €1.5m.
A first glance this seems like a real positive for shareholders, since Sophie Boissard is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Korian has changed from year to year.
Is Korian Growing?
On average over the last three years, Korian has grown earnings per share (EPS) by 12% each year (using a line of best fit). Its revenue is up 7.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Korian Been A Good Investment?
I think that the total shareholder return of 63%, over three years, would leave most Korian shareholders smiling. 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 Korian remunerates its CEO below most similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Sophie Boissard deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Korian 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.
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.
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. Thank you for reading.
