Didier Michaud-Daniel became the CEO of Bureau Veritas SA (EPA:BVI) in 2012. First, this article will compare CEO compensation with compensation at other large companies. 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 Didier Michaud-Daniel's Compensation Compare With Similar Sized Companies?
Our data indicates that Bureau Veritas SA is worth €9.6b, and total annual CEO compensation was reported as €4.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €900k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a group of companies with market caps over €7.3b, we found that their median CEO total compensation was €3.2m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Thus we can conclude that Didier Michaud-Daniel receives more in total compensation than the median of a group of large companies in the same market as Bureau Veritas SA. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Bureau Veritas, below.
Is Bureau Veritas SA Growing?
Bureau Veritas SA has increased its earnings per share (EPS) by an average of 8.6% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 5.7%.
I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Bureau Veritas SA Been A Good Investment?
Bureau Veritas SA has served shareholders reasonably well, with a total return of 25% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We examined the amount Bureau Veritas SA pays its CEO, and compared it to the amount paid by other large companies. We found that it pays well over the median amount paid in the benchmark group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. Whatever your view on compensation, you might want to check if insiders are buying or selling Bureau Veritas shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.