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Should You Worry About Arkema SA’s (EPA:AKE) CEO Pay Cheque?

Thierry Le Hénaff has been the CEO of Arkema SA (EPA:AKE) since 2006. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.

Check out our latest analysis for Arkema

How Does Thierry Le Hénaff’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Arkema SA has a market cap of €6.9b, and is paying total annual CEO compensation of €2.7m. We note that’s an increase of 15% above last year. We looked at a group of companies with market capitalizations from €3.5b to €11b, and the median CEO compensation was €2.1m.

That means Thierry Le Hénaff 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, below, how CEO compensation at Arkema has changed over time.

ENXTPA:AKE CEO Compensation November 20th 18

Is Arkema SA Growing?

Arkema SA has increased its earnings per share (EPS) by an average of 29% a year, over the last three years In the last year, its revenue is up 4.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Arkema SA Been A Good Investment?

I think that the total shareholder return of 39%, over three years, would leave most Arkema SA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Thierry Le Hénaff is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance!

Or you might rather take a peek at this analytical visualization of historic cash flow, 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.