Should You Worry About Société Générale Société anonyme's (EPA:GLE) CEO Pay Cheque?
In 2008 Frédéric Oudéa was appointed CEO of Société Générale Société anonyme (EPA:GLE). This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Société Générale Société anonyme
How Does Frédéric Oudéa's Compensation Compare With Similar Sized Companies?
Our data indicates that Société Générale Société anonyme is worth €20b, and total annual CEO compensation was reported as €3.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €1.3m. We took a group of companies with market capitalizations over €7.3b, and calculated the median CEO total compensation to be €3.2m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
That means Frédéric Oudéa receives fairly typical remuneration for the CEO of a large company. 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.
The graphic below shows how CEO compensation at Société Générale Société anonyme has changed from year to year.
Is Société Générale Société anonyme Growing?
On average over the last three years, Société Générale Société anonyme has shrunk earnings per share by 6.6% each year (measured with a line of best fit). It saw its revenue drop 7.1% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Société Générale Société anonyme Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Société Générale Société anonyme shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Frédéric Oudéa is close enough to the median pay for a CEO of a large company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Société Générale Société anonyme (free visualization of insider trades).
Important note: Société Générale Société anonyme 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.
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.
