Yahoo Finance Is Icade's (EPA:ICAD) CEO Pay Fair?
In 2015 Olivier Wigniolle was appointed CEO of Icade (EPA:ICAD). First, this article will compare CEO compensation with compensation at similar sized 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Icade
How Does Olivier Wigniolle's Compensation Compare With Similar Sized Companies?
Our data indicates that Icade is worth €6.7b, and total annual CEO compensation was reported as €484k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €400k. We examined companies with market caps from €3.6b to €11b, and discovered that the median CEO total compensation of that group was €2.3m.
A first glance this seems like a real positive for shareholders, since Olivier Wigniolle is paid less than the average total compensation paid by similar sized companies. 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 Icade, below.
Is Icade Growing?
On average over the last three years, Icade has grown earnings per share (EPS) by 55% each year (using a line of best fit). Its revenue is up 1.1% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Icade Been A Good Investment?
Boasting a total shareholder return of 69% over three years, Icade has done well by shareholders. 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...
Icade is currently paying its CEO below what is normal for companies of its size.
Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Olivier Wigniolle deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Icade insiders are buying or selling shares.
If you want to buy a stock that is better than Icade, 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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