Is Société Anonyme Belge de Constructions Aéronautiques’s (EBR:SAB) CEO Paid Enough Relative To Peers?

In 2016 Jongen Thibauld was appointed CEO of Société Anonyme Belge de Constructions Aéronautiques (EBR:SAB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Société Anonyme Belge de Constructions Aéronautiques

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 €52m, and paid its CEO total annual compensation worth €327k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €238k. We looked at a group of companies with market capitalizations under €182m, and the median CEO total compensation was €355k.

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.

ENXTBR:SAB CEO Compensation, November 27th 2019
ENXTBR:SAB CEO Compensation, November 27th 2019

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 88% each year (using a line of best fit). In the last year, its revenue is down 14%.

This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. 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 25% over three years, many shareholders in Société Anonyme Belge de Constructions Aéronautiques are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

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 we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Société Anonyme Belge de Constructions Aéronautiques.

If you want to buy a stock that is better than Société Anonyme Belge de Constructions Aéronautiques, this free list of high return, low debt companies is a great place to look.

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