Yahoo Finance Why Trigano S.A.'s (EPA:TRI) CEO Pay Matters To You
François Feuillet has been the CEO of Trigano S.A. (EPA:TRI) since 1981. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Trigano
How Does François Feuillet's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Trigano S.A. has a market cap of €1.3b, and reported total annual CEO compensation of €603k for the year to August 2019. We think total compensation is more important but we note that the CEO salary is lower, at €544k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €921m to €2.9b. The median total CEO compensation was €1.4m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Trigano stands. Talking in terms of the sector, salary represented approximately 33% of total compensation out of all the companies we analysed, while other remuneration made up 67% of the pie. Trigano is paying a higher share of its remuneration through a salary in comparison to the overall industry.
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, below, how CEO compensation at Trigano has changed over time.
Is Trigano S.A. Growing?
Trigano S.A. has seen earnings per share (EPS) move positively by an average of 22% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Trigano S.A. Been A Good Investment?
Given the total loss of 25% over three years, many shareholders in Trigano S.A. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It appears that Trigano S.A. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we would not say that François Feuillet is generously paid, it would be good to see an improvement in business performance before too an increase in pay. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Shifting gears from CEO pay for a second, we've spotted 3 warning signs for Trigano you should be aware of, and 1 of them doesn't sit too well with us.
If you want to buy a stock that is better than Trigano, 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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