In 2016 Jongen Thibauld was appointed CEO of Société Anonyme Belge de Constructions Aéronautiques (EBR:SAB). 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 method should give us information to assess how appropriately the company pays the CEO.
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How Does Jongen Thibauld’s Compensation Compare With Similar Sized Companies?
According to our data, Société Anonyme Belge de Constructions Aéronautiques has a market capitalization of €59m, and pays its CEO total annual compensation worth €242k. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €211k. We took a group of companies with market capitalizations below €175m, and calculated the median CEO compensation to be €300k.
That means Jongen Thibauld receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Société Anonyme Belge de Constructions Aéronautiques has changed over time.
Is Société Anonyme Belge de Constructions Aéronautiques Growing?
On average over the last three years, Société Anonyme Belge de Constructions Aéronautiques has grown earnings per share (EPS) by 53% each year (using a line of best fit). Its revenue is down -3.3% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Société Anonyme Belge de Constructions Aéronautiques Been A Good Investment?
Given the total loss of 24% over three years, many shareholders in Société Anonyme Belge de Constructions Aéronautiques are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Jongen Thibauld is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Société Anonyme Belge de Constructions Aéronautiques shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.