Jean Karam has been the CEO of MEMSCAP, S.A. (EPA:MEMS) since 1998. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
How Does Jean Karam’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that MEMSCAP, S.A. has a market cap of €14m, and reported total annual CEO compensation of €300k for the year to December 2018. Notably, the salary of €300k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below €182m. The median CEO total compensation in that group is €154k.
As you can see, Jean Karam is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MEMSCAP, S.A. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at MEMSCAP has changed over time.
Is MEMSCAP, S.A. Growing?
On average over the last three years, MEMSCAP, S.A. has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is up 4.2% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don’t have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has MEMSCAP, S.A. Been A Good Investment?
With a total shareholder return of 19% over three years, MEMSCAP, S.A. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by MEMSCAP, S.A., and compared it to remuneration at a group of similar sized 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. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. So you may want to check if insiders are buying MEMSCAP shares with their own money (free access).
If you want to buy a stock that is better than MEMSCAP, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.