Yahoo Finance Is Ipsen S.A. (EPA:IPN) Overpaying Its CEO?
In 2016 David Meek was appointed CEO of Ipsen S.A. (EPA:IPN). 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Ipsen
How Does David Meek's Compensation Compare With Similar Sized Companies?
According to our data, Ipsen S.A. has a market capitalization of €6.6b, and paid its CEO total annual compensation worth €3.1m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €900k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from €3.6b to €11b, we found the median CEO total compensation was €2.5m.
That means David Meek receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Ipsen has changed over time.
Is Ipsen S.A. Growing?
On average over the last three years, Ipsen S.A. has grown earnings per share (EPS) by 24% each year (using a line of best fit). It achieved revenue growth of 16% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Ipsen S.A. Been A Good Investment?
With a total shareholder return of 14% over three years, Ipsen S.A. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
David Meek is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Ipsen insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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