The CEO of Fleury Michon SA (EPA:FLE) is Régis Lebrun. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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See our latest analysis for Fleury Michon
How Does Régis Lebrun's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Fleury Michon SA has a market cap of €171m, and is paying total annual CEO compensation of €342k. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at €274k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €89m to €358m. The median total CEO compensation was €304k.
So Régis Lebrun receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Fleury Michon has changed from year to year.
Is Fleury Michon SA Growing?
Over the last three years Fleury Michon SA has shrunk its earnings per share by an average of 16% per year (measured with a line of best fit). It achieved revenue growth of 1.2% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Fleury Michon SA Been A Good Investment?
Since shareholders would have lost about 31% over three years, some Fleury Michon SA shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Régis Lebrun is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Fleury Michon shares (free trial).