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Should You Worry About Constructions Industrielles de la Méditerranée's (EPA:COM) CEO Pay?

Simply Wall St

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In 2009 Nicolas Dmitrieff was appointed CEO of Constructions Industrielles de la Méditerranée (EPA:COM). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Constructions Industrielles de la Méditerranée

How Does Nicolas Dmitrieff's Compensation Compare With Similar Sized Companies?

Our data indicates that Constructions Industrielles de la Méditerranée is worth €156m, and total annual CEO compensation is €912k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €460k. We looked at a group of companies with market capitalizations from €89m to €356m, and the median CEO total compensation was €258k.

It would therefore appear that Constructions Industrielles de la Méditerranée pays Nicolas Dmitrieff more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Constructions Industrielles de la Méditerranée has changed over time.

ENXTPA:COM CEO Compensation, July 19th 2019

Is Constructions Industrielles de la Méditerranée Growing?

Constructions Industrielles de la Méditerranée has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). Its revenue is up 10% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Constructions Industrielles de la Méditerranée Been A Good Investment?

Given the total loss of 33% over three years, many shareholders in Constructions Industrielles de la Méditerranée are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at Constructions Industrielles de la Méditerranée with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Constructions Industrielles de la Méditerranée shares with their own money (free access).

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 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. Thank you for reading.