A Look At Groupe Bruxelles Lambert's (EBR:GBLB) CEO Remuneration

The CEO of Groupe Bruxelles Lambert SA (EBR:GBLB) is Ian Gallienne, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Groupe Bruxelles Lambert.

View our latest analysis for Groupe Bruxelles Lambert

Comparing Groupe Bruxelles Lambert SA's CEO Compensation With the industry

At the time of writing, our data shows that Groupe Bruxelles Lambert SA has a market capitalization of €13b, and reported total annual CEO compensation of €1.9m for the year to December 2019. We note that's a decrease of 18% compared to last year. Notably, the salary which is €1.59m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations above €6.6b, reported a median total CEO compensation of €2.0m. So it looks like Groupe Bruxelles Lambert compensates Ian Gallienne in line with the median for the industry. Furthermore, Ian Gallienne directly owns €1.7m worth of shares in the company.

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Groupe Bruxelles Lambert pays out 84% 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 Groupe Bruxelles Lambert SA's Growth Numbers

Over the last three years, Groupe Bruxelles Lambert SA has shrunk its earnings per share by 23% per year. In the last year, its revenue is up 5.4%.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Groupe Bruxelles Lambert SA Been A Good Investment?

With a three year total loss of 1.6% for the shareholders, Groupe Bruxelles Lambert SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Ian is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Groupe Bruxelles Lambert (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Important note: Groupe Bruxelles Lambert 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.

If you decide to trade Groupe Bruxelles Lambert, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.