Valérie Chapoulaud-Floquet became the CEO of Rémy Cointreau SA (EPA:RCO) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Valérie Chapoulaud-Floquet's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Rémy Cointreau SA has a market cap of €6.2b, and reported total annual CEO compensation of €2.3m for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at €740k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €2.3m.
That means Valérie Chapoulaud-Floquet receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Rémy Cointreau has changed from year to year.
Is Rémy Cointreau SA Growing?
Over the last three years Rémy Cointreau SA has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Rémy Cointreau SA Been A Good Investment?
I think that the total shareholder return of 76%, over three years, would leave most Rémy Cointreau SA shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Valérie Chapoulaud-Floquet is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rémy Cointreau.
Important note: Rémy Cointreau may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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