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Should You Worry About ORPEA Société Anonyme's (EPA:ORP) CEO Pay?

Simply Wall St

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In 2011 Yves Le Masne was appointed CEO of ORPEA Société Anonyme (EPA:ORP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for ORPEA Société Anonyme

How Does Yves Le Masne's Compensation Compare With Similar Sized Companies?

According to our data, ORPEA Société Anonyme has a market capitalization of €7.0b, and pays its CEO total annual compensation worth €2.5m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €760k. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €2.5m.

So Yves Le Masne receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at ORPEA Société Anonyme has changed over time.

ENXTPA:ORP CEO Compensation, July 20th 2019

Is ORPEA Société Anonyme Growing?

ORPEA Société Anonyme has increased its earnings per share (EPS) by an average of 5.8% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 9.0%.

I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.

Has ORPEA Société Anonyme Been A Good Investment?

Most shareholders would probably be pleased with ORPEA Société Anonyme for providing a total return of 40% over three years. 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...

Yves Le Masne is paid around what is normal the leaders of comparable size companies.

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if ORPEA Société Anonyme 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.

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.