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Is SES-imagotag Société Anonyme's (EPA:SESL) CEO Being Overpaid?

In 2012 Thierry Gadou was appointed CEO of SES-imagotag Société Anonyme (EPA:SESL). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

Check out our latest analysis for SES-imagotag Société Anonyme

How Does Thierry Gadou's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that SES-imagotag Société Anonyme has a market cap of €472m, and reported total annual CEO compensation of €717k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €320k. We examined companies with market caps from €181m to €722m, and discovered that the median CEO total compensation of that group was €397k.

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As you can see, Thierry Gadou is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean SES-imagotag Société Anonyme is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at SES-imagotag Société Anonyme, below.

ENXTPA:SESL CEO Compensation, December 23rd 2019
ENXTPA:SESL CEO Compensation, December 23rd 2019

Is SES-imagotag Société Anonyme Growing?

SES-imagotag Société Anonyme has reduced its earnings per share by an average of 58% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 64%.

The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has SES-imagotag Société Anonyme Been A Good Investment?

SES-imagotag Société Anonyme has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We examined the amount SES-imagotag Société Anonyme pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. Shareholders may want to check for free if SES-imagotag Société Anonyme insiders are buying or selling shares.

Important note: SES-imagotag Société Anonyme 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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.