Yahoo Finance Why Egide S.A.'s (EPA:GID) CEO Pay Matters To You
Jim Collins became the CEO of Egide S.A. (EPA:GID) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Egide
How Does Jim Collins's Compensation Compare With Similar Sized Companies?
Our data indicates that Egide S.A. is worth €9.4m, and total annual CEO compensation was reported as €84k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €64k. We examined a group of similar sized companies, with market capitalizations of below €183m. The median CEO total compensation in that group is €294k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Egide stands. Talking in terms of the sector, salary represented approximately 71% of total compensation out of all the companies we analysed, while other remuneration made up 29% of the pie. Our data reveals that Egide allocates salary in line with the wider market.
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 Egide, below.
Is Egide S.A. Growing?
On average over the last three years, Egide S.A. has shrunk earnings per share by 45% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Egide S.A. Been A Good Investment?
Given the total loss of 65% over three years, many shareholders in Egide S.A. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It looks like Egide S.A. pays its CEO less than similar sized companies.
Jim Collins is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. On another note, Egide has 5 warning signs (and 3 which are a bit concerning) we think you should know about.
Important note: Egide 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.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
