Isabelle Kocher has been the CEO of ENGIE SA (EPA:ENGI) since 2016. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. 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.
How Does Isabelle Kocher's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that ENGIE SA has a market cap of €34b, and reported total annual CEO compensation of €2.8m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €1.0m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations over €7.2b, and calculated the median CEO total compensation to be €3.3m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Isabelle Kocher 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.
You can see, below, how CEO compensation at ENGIE has changed over time.
Is ENGIE SA Growing?
ENGIE SA has increased its earnings per share (EPS) by an average of 118% a year, over the last three years (using a line of best fit). Its revenue is up 6.4% 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 ENGIE SA Been A Good Investment?
Most shareholders would probably be pleased with ENGIE SA for providing a total return of 45% over three years. 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.
Remuneration for Isabelle Kocher is close enough to the median pay for a CEO of a large company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if ENGIE insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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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