A Quick Analysis On Crédit Agricole’s (EPA:ACA) CEO Compensation

Philippe Brassac became the CEO of Crédit Agricole S.A. (EPA:ACA) in 2015, and we think it’s a good time to look at the executive’s compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Crédit Agricole

Comparing Crédit Agricole S.A.’s CEO Compensation With the industry

At the time of writing, our data shows that Crédit Agricole S.A. has a market capitalization of €24b, and reported total annual CEO compensation of €2.4m for the year to December 2019. That’s just a smallish increase of 6.4% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.1m.

In comparison with other companies in the industry with market capitalizations over €6.8b , the reported median total CEO compensation was €2.1m. So it looks like Crédit Agricole compensates Philippe Brassac in line with the median for the industry.

Component20192018Proportion (2019)
Salary €1.1m €1.0m 47%
Other €1.3m €1.2m 53%
Total Compensation€2.4m €2.2m100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. In Crédit Agricole’s case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ENXTPA:ACA CEO Compensation August 10th 2020

A Look at Crédit Agricole S.A.’s Growth Numbers

Over the past three years, Crédit Agricole S.A. has seen its earnings per share (EPS) grow by 15% per year. It saw its revenue drop 2.3% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It’s always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Crédit Agricole S.A. Been A Good Investment?

Given the total shareholder loss of 37% over three years, many shareholders in Crédit Agricole S.A. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary…

As previously discussed, Philippe is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, earnings growth is positive over the same time frame. Considering positive earnings growth, we’d say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Crédit Agricole that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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