Didier Michaud-Daniel became the CEO of Bureau Veritas SA (EPA:BVI) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Didier Michaud-Daniel’s Compensation Compare With Similar Sized Companies?
According to our data, Bureau Veritas SA has a market capitalization of €10b, and paid its CEO total annual compensation worth €4.3m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €900k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over €7.2b and the median CEO total compensation was €3.2m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
As you can see, Didier Michaud-Daniel is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Bureau Veritas SA is paying too much. 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 Bureau Veritas, below.
Is Bureau Veritas SA Growing?
Bureau Veritas SA has increased its earnings per share (EPS) by an average of 8.6% a year, over the last three years (using a line of best fit). It achieved revenue growth of 5.7% over the last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bureau Veritas SA Been A Good Investment?
Boasting a total shareholder return of 34% over three years, Bureau Veritas SA 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 total CEO remuneration at Bureau Veritas SA with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there’s no arguing with the strong returns to shareholders, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Bureau Veritas insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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