Yahoo Finance Does BNP Paribas SA's (EPA:BNP) CEO Salary Reflect Performance?
In 2011, Jean-Laurent Bonnafé was appointed CEO of BNP Paribas SA (EPA:BNP). 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for BNP Paribas
How Does Jean-Laurent Bonnafé's Compensation Compare With Similar Sized Companies?
Our data indicates that BNP Paribas SA is worth €33b, and total annual CEO compensation was reported as €3.9m for the year to December 2019. We note that's an increase of 14% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.6m. We looked at a group of companies with market capitalizations over €7.4b and the median CEO total compensation was €3.8m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 66% of total compensation out of all the companies we analysed, while other remuneration made up 34% of the pie. It's interesting to note that BNP Paribas allocates a smaller portion of compensation to salary in comparison to the broader industry.
So Jean-Laurent Bonnafé is paid around the average of 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 a visual representation of the CEO compensation at BNP Paribas, below.
Is BNP Paribas SA Growing?
BNP Paribas SA saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is up 7.1%.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has BNP Paribas SA Been A Good Investment?
Since shareholders would have lost about 52% over three years, some BNP Paribas SA shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Jean-Laurent Bonnafé is paid around the same as most CEOs of large companies.
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. Shareholders might not feel great about the fact that CEO pay increased on last year. So many would argue that the CEO is certainly not underpaid. CEO compensation is an important area to keep your eyes on, but we've also identified 3 warning signs for BNP Paribas (1 is concerning!) that you should be aware of before investing here.
Important note: BNP Paribas 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.
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.
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