Here's Why It's Unlikely That Valeo SE's (EPA:FR) CEO Will See A Pay Rise This Year

Key Insights

• Valeo will host its Annual General Meeting on 22nd of May
• CEO Christophe Perillat-Piratoine's total compensation includes salary of €975.0k
• The overall pay is 576% above the industry average
• Valeo's three-year loss to shareholders was 44% while its EPS was down 2.8% over the past three years

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The results at Valeo SE (EPA:FR) have been quite disappointing recently and CEO Christophe Perillat-Piratoine bears some responsibility for this. At the upcoming AGM on 22nd of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Valeo

Comparing Valeo SE's CEO Compensation With The Industry

At the time of writing, our data shows that Valeo SE has a market capitalization of €2.3b, and reported total annual CEO compensation of €4.0m for the year to December 2024. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €975k.

For comparison, other companies in the French Auto Components industry with market capitalizations ranging between €1.8b and €5.7b had a median total CEO compensation of €590k. Accordingly, our analysis reveals that Valeo SE pays Christophe Perillat-Piratoine north of the industry median. Moreover, Christophe Perillat-Piratoine also holds €2.7m worth of Valeo stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€975k	€975k	24%
Other	€3.0m	€2.9m	76%
Total Compensation	€4.0m	€3.9m	100%

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. It's interesting to note that Valeo allocates a smaller portion of compensation to salary in comparison 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.

Valeo SE's Growth

Over the last three years, Valeo SE has shrunk its earnings per share by 2.8% per year. In the last year, its revenue is down 2.5%.

Its a bit disappointing to see that the company has failed to grow its EPS. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Valeo SE Been A Good Investment?

With a total shareholder return of -44% over three years, Valeo SE shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 4 warning signs for Valeo that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.