Our View On Compagnie du Bois Sauvage's (EBR:COMB) CEO Pay

The CEO of Compagnie du Bois Sauvage SA (EBR:COMB) is Benoit Deckers, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Compagnie du Bois Sauvage

How Does Total Compensation For Benoit Deckers Compare With Other Companies In The Industry?

At the time of writing, our data shows that Compagnie du Bois Sauvage SA has a market capitalization of €520m, and reported total annual CEO compensation of €356k for the year to December 2019. That's a modest increase of 7.4% on the prior year. We note that the salary portion, which stands at €284.3k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between €337m and €1.3b, we discovered that the median CEO total compensation of that group was €850k. This suggests that Benoit Deckers is paid below the industry median.

Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. Compagnie du Bois Sauvage pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Compagnie du Bois Sauvage SA's Growth Numbers

Compagnie du Bois Sauvage SA's earnings per share (EPS) grew 21% per year over the last three years. In the last year, its revenue is down 12%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Compagnie du Bois Sauvage SA Been A Good Investment?

Since shareholders would have lost about 6.6% over three years, some Compagnie du Bois Sauvage SA investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Benoit is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth over three years is certainly impressive. Although we would've liked to see positive investor returns, it would be bold of us to criticize CEO compensation when EPS are up. But shareholders will likely want to hold off on any raise for Benoit until investor returns are positive.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Compagnie du Bois Sauvage (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Important note: Compagnie du Bois Sauvage is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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