Yahoo Finance Is GL Events's (EPA:GLO) CEO Salary Justified?
Olivier Ginon is the CEO of GL Events (EPA:GLO). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
See our latest analysis for GL Events
How Does Olivier Ginon's Compensation Compare With Similar Sized Companies?
According to our data, GL Events has a market capitalization of €730m, and pays its CEO total annual compensation worth €384k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at €332k. When we examined a selection of companies with market caps ranging from €357m to €1.4b, we found the median CEO total compensation was €595k.
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 GL Events, below.
Is GL Events Growing?
On average over the last three years, GL Events has grown earnings per share (EPS) by 7.4% each year (using a line of best fit). In the last year, its revenue is up 8.8%.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.
Has GL Events Been A Good Investment?
Boasting a total shareholder return of 59% over three years, GL Events has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It looks like GL Events pays its CEO less than similar sized companies.
Olivier Ginon is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Shareholders may want to check for free if GL Events insiders are buying or selling shares.
If you want to buy a stock that is better than GL Events, this free list of high return, low debt companies is a great place to look.
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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.
