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Is DBV Technologies SA’s (EPA:DBV) CEO Incentives Align With Yours?

In 2002 Pierre-Henri Benhamou was appointed CEO of DBV Technologies SA (EPA:DBV). 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for DBV Technologies

How Does Pierre-Henri Benhamou’s Compensation Compare With Similar Sized Companies?

According to our data, DBV Technologies SA has a market capitalization of €985m, and pays its CEO total annual compensation worth €610k. That’s less than last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €353m to €1.4b. The median total CEO compensation was €562k.

So Pierre-Henri Benhamou receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at DBV Technologies has changed over time.

ENXTPA:DBV CEO Compensation November 2nd 18

Is DBV Technologies SA Growing?

On average over the last three years, DBV Technologies SA has shrunk earnings per share by 40% each year. Its revenue is down -4.7% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

It could be important to check this free visual depiction of what analysts expect for the future.

Has DBV Technologies SA Been A Good Investment?

Given the total loss of 47% over three years, many shareholders in DBV Technologies SA 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…

Pierre-Henri Benhamou is paid around what is normal the leaders of comparable size companies.

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. Whatever your view on compensation, you might want to check if insiders are buying or selling DBV Technologies SA shares (free trial).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.