Why We Think UCB SA's (EBR:UCB) CEO Compensation Is Not Excessive At All

Key Insights

• UCB will host its Annual General Meeting on 24th of April
• Total pay for CEO Jean-Christophe Tellier includes €1.35m salary
• The total compensation is similar to the average for the industry
• UCB's EPS grew by 0.1% over the past three years while total shareholder return over the past three years was 25%

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Performance at UCB SA (EBR:UCB) has been reasonably good and CEO Jean-Christophe Tellier has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 24th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for UCB

Comparing UCB SA's CEO Compensation With The Industry

At the time of writing, our data shows that UCB SA has a market capitalization of €26b, and reported total annual CEO compensation of €6.8m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.4m.

In comparison with other companies in the Belgium Pharmaceuticals industry with market capitalizations over €7.0b, the reported median total CEO compensation was €8.8m. From this we gather that Jean-Christophe Tellier is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 55% of total compensation out of all the companies we analyzed, while other remuneration made up 45% of the pie. UCB pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

UCB SA's Growth

UCB SA saw earnings per share stay pretty flat over the last three years. Its revenue is up 19% over the last year.

We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has UCB SA Been A Good Investment?

UCB SA has served shareholders reasonably well, with a total return of 25% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for UCB that investors should look into moving forward.

Switching gears from UCB, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.