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Does AURES Technologies S.A.'s (EPA:AURS) CEO Pay Matter?

Patrick Cathala is the CEO of AURES Technologies S.A. (EPA:AURS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for AURES Technologies

How Does Patrick Cathala's Compensation Compare With Similar Sized Companies?

According to our data, AURES Technologies S.A. has a market capitalization of €90m, and paid its CEO total annual compensation worth €815k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €503k. We looked at a group of companies with market capitalizations under €180m, and the median CEO total compensation was €285k.

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Thus we can conclude that Patrick Cathala receives more in total compensation than the median of a group of companies in the same market, and of similar size to AURES Technologies S.A.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at AURES Technologies, below.

ENXTPA:AURS CEO Compensation, January 18th 2020
ENXTPA:AURS CEO Compensation, January 18th 2020

Is AURES Technologies S.A. Growing?

On average over the last three years, AURES Technologies S.A. has grown earnings per share (EPS) by 5.5% each year (using a line of best fit). In the last year, its revenue is up 12%.

I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.

Has AURES Technologies S.A. Been A Good Investment?

With a total shareholder return of 25% over three years, AURES Technologies S.A. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared the total CEO remuneration paid by AURES Technologies S.A., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Whatever your view on compensation, you might want to check if insiders are buying or selling AURES Technologies shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.