Shareholders Will Probably Hold Off On Increasing OPmobility SE's (EPA:OPM) CEO Compensation For The Time Being

Key Insights

• OPmobility to hold its Annual General Meeting on 24th of April
• Total pay for CEO Laurent Favre includes €1.10m salary
• The total compensation is similar to the average for the industry
• Over the past three years, OPmobility's EPS grew by 11% and over the past three years, the total loss to shareholders 39%

We've discovered 2 warning signs about OPmobility. View them for free.

Shareholders of OPmobility SE (EPA:OPM) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 24th of April. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for OPmobility

Comparing OPmobility SE's CEO Compensation With The Industry

According to our data, OPmobility SE has a market capitalization of €1.2b, and paid its CEO total annual compensation worth €3.9m over the year to December 2024. That's a notable increase of 18% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.1m.

For comparison, other companies in the French Auto Components industry with market capitalizations ranging between €878m and €2.8b had a median total CEO compensation of €4.0m. So it looks like OPmobility compensates Laurent Favre in line with the median for the industry. Moreover, Laurent Favre also holds €152k worth of OPmobility stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€1.1m	€1.1m	29%
Other	€2.8m	€2.2m	71%
Total Compensation	€3.9m	€3.3m	100%

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. It's interesting to note that OPmobility allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

OPmobility SE's Growth

Over the past three years, OPmobility SE has seen its earnings per share (EPS) grow by 11% per year. Its revenue is up 1.6% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has OPmobility SE Been A Good Investment?

The return of -39% over three years would not have pleased OPmobility SE shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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. We've identified 2 warning signs for OPmobility that investors should be aware of in a dynamic business environment.

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.