Yahoo Finance Does Ubisoft Entertainment SA's (EPA:UBI) CEO Pay Compare Well With Peers?
Yves Guillemot is the CEO of Ubisoft Entertainment SA (EPA:UBI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
View our latest analysis for Ubisoft Entertainment
How Does Yves Guillemot's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Ubisoft Entertainment SA has a market cap of €8.7b, and reported total annual CEO compensation of €1.9m for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at €568k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from €3.7b to €11b, and the median CEO total compensation was €2.6m.
So Yves Guillemot 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.
The graphic below shows how CEO compensation at Ubisoft Entertainment has changed from year to year.
Is Ubisoft Entertainment SA Growing?
Over the last three years Ubisoft Entertainment SA has shrunk its earnings per share by an average of 11% per year (measured with a line of best fit). In the last year, its revenue is down 13%.
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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Ubisoft Entertainment SA Been A Good Investment?
I think that the total shareholder return of 110%, over three years, would leave most Ubisoft Entertainment SA shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Remuneration for Yves Guillemot is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ubisoft Entertainment.
If you want to buy a stock that is better than Ubisoft Entertainment, this free list of high return, low debt companies is a great place to look.
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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