JP Tricoire has been the CEO of Schneider Electric S.E. (EPA:SU) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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.
How Does JP Tricoire’s Compensation Compare With Similar Sized Companies?
According to our data, Schneider Electric S.E. has a market capitalization of €43b, and pays its CEO total annual compensation worth €6.3m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €1.0m. We took a group of companies with market capitalizations over €7.2b, and calculated the median CEO total compensation to be €3.3m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
Thus we can conclude that JP Tricoire receives more in total compensation than the median of a group of large companies in the same market as Schneider Electric S.E.. However, this doesn’t necessarily mean the pay 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 Schneider Electric, below.
Is Schneider Electric S.E. Growing?
Schneider Electric S.E. has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.9%.
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.
Has Schneider Electric S.E. Been A Good Investment?
Boasting a total shareholder return of 48% over three years, Schneider Electric S.E. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Schneider Electric S.E., and compared it to remuneration at a group of other large companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Schneider Electric shares with their own money (free access).
If you want to buy a stock that is better than Schneider Electric, this free list of high return, low debt companies is a great place to look.
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