Yahoo Finance Is Egide S.A.'s (EPA:GID) CEO Salary Justified?
Jim Collins became the CEO of Egide S.A. (EPA:GID) in 2014. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Egide
How Does Jim Collins's Compensation Compare With Similar Sized Companies?
Our data indicates that Egide S.A. is worth €10m, and total annual CEO compensation is €84k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €64k. We examined a group of similar sized companies, with market capitalizations of below €180m. The median CEO total compensation in that group is €120k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Egide, below.
Is Egide S.A. Growing?
On average over the last three years, Egide S.A. has grown earnings per share (EPS) by 43% each year (using a line of best fit). It achieved revenue growth of 2.7% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Egide S.A. Been A Good Investment?
Since shareholders would have lost about 69% over three years, some Egide S.A. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It looks like Egide S.A. pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we don't think, Jim Collins is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Egide.
Important note: Egide 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.
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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.
