The CEO of ADLPartner (EPA:ALP) is Olivier Riès. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for ADLPartner
How Does Olivier Riès's Compensation Compare With Similar Sized Companies?
According to our data, ADLPartner has a market capitalization of €64m, and pays its CEO total annual compensation worth €420k. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at €195k. We looked at a group of companies with market capitalizations under €179m, and the median CEO total compensation was €145k.
It would therefore appear that ADLPartner pays Olivier Riès more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 ADLPartner, below.
Is ADLPartner Growing?
ADLPartner has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has ADLPartner Been A Good Investment?
ADLPartner has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We examined the amount ADLPartner pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Whatever your view on compensation, you might want to check if insiders are buying or selling ADLPartner shares (free trial).