Benoit de Ruffray became the CEO of Eiffage SA (EPA:FGR) in 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Benoit de Ruffray's Compensation Compare With Similar Sized Companies?
According to our data, Eiffage SA has a market capitalization of €11b, and paid its CEO total annual compensation worth €3.8m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued 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. We took a group of companies with market capitalizations over €7.4b, and calculated the median CEO total compensation to be €3.1m. (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 Benoit de Ruffray is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Eiffage has changed over time.
Is Eiffage SA Growing?
Over the last three years Eiffage SA has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). It achieved revenue growth of 12% 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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Eiffage SA Been A Good Investment?
I think that the total shareholder return of 72%, over three years, would leave most Eiffage SA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Benoit de Ruffray is paid around the same as most CEOs of large companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Eiffage shares with their own money (free access).
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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