Mathieu Coutier has been the CEO of AKWEL (EPA:AKW) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether AKWEL pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for AKWEL
How Does Total Compensation For Mathieu Coutier Compare With Other Companies In The Industry?
According to our data, AKWEL has a market capitalization of €561m, and paid its CEO total annual compensation worth €623k over the year to December 2019. That is, the compensation was roughly the same as last year. Notably, the salary which is €400.8k, represents most of the total compensation being paid.
On comparing similar companies from the same industry with market caps ranging from €330m to €1.3b, we found that the median CEO total compensation was €457k. Accordingly, our analysis reveals that AKWEL pays Mathieu Coutier north of the industry median.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €401k | €401k | 64% |
| Other | €223k | €223k | 36% |
| Total Compensation | €623k | €623k | 100% |
Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. AKWEL pays out 64% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at AKWEL's Growth Numbers
AKWEL has reduced its earnings per share by 20% a year over the last three years. It saw its revenue drop 14% over the last year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 AKWEL Been A Good Investment?
Given the total shareholder loss of 35% over three years, many shareholders in AKWEL are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Mathieu is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. What's equally worrying is that the company isn't growing by our analysis. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for AKWEL that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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About ENXTPA:AKW
Akwel
Manufactures automotive and heavy goods vehicle components in France and internationally.
Flawless balance sheet average dividend payer.
