Dominique Marcel has been the CEO of Compagnie des Alpes SA (EPA:CDA) since 2009, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Compagnie des Alpes.
How Does Total Compensation For Dominique Marcel Compare With Other Companies In The Industry?
At the time of writing, our data shows that Compagnie des Alpes SA has a market capitalization of €437m, and reported total annual CEO compensation of €485k for the year to September 2019. This means that the compensation hasn’t changed much from last year. We note that the salary portion, which stands at €400.0k constitutes the majority of total compensation received by the CEO.
On comparing similar companies from the same industry with market caps ranging from €178m to €714m, we found that the median CEO total compensation was €794k. That is to say, Dominique Marcel is paid under the industry median. What’s more, Dominique Marcel holds €159k worth of shares in the company in their own name.
Speaking on an industry level, nearly 68% of total compensation represents salary, while the remainder of 32% is other remuneration. Compagnie des Alpes is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Compagnie des Alpes SA’s Growth
Compagnie des Alpes SA has seen its earnings per share (EPS) increase by 3.9% a year over the past three years. It achieved revenue growth of 1.1% over the last year.
We’d prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Compagnie des Alpes SA Been A Good Investment?
Given the total shareholder loss of 32% over three years, many shareholders in Compagnie des Alpes SA are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, Compagnie des Alpes SA is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the EPS growth is lacking, just like the returns (over three years). So while we don’t think, Dominique is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We’ve identified 2 warning signs for Compagnie des Alpes that investors should be aware of in a dynamic business environment.
Switching gears from Compagnie des Alpes, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
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