Here's Why Shareholders May Want To Be Cautious With Increasing BNP Paribas SA's (EPA:BNP) CEO Pay Packet

Key Insights

• BNP Paribas' Annual General Meeting to take place on 13th of May
• Salary of €1.84m is part of CEO Jean-Laurent Bonnafe's total remuneration
• The total compensation is 64% higher than the average for the industry
• BNP Paribas' EPS grew by 11% over the past three years while total shareholder return over the past three years was 88%

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CEO Jean-Laurent Bonnafe has done a decent job of delivering relatively good performance at BNP Paribas SA (EPA:BNP) recently. As shareholders go into the upcoming AGM on 13th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for BNP Paribas

How Does Total Compensation For Jean-Laurent Bonnafe Compare With Other Companies In The Industry?

According to our data, BNP Paribas SA has a market capitalization of €86b, and paid its CEO total annual compensation worth €4.3m over the year to December 2024. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.8m.

For comparison, other companies in the France Banks industry with market capitalizations above €7.1b, reported a median total CEO compensation of €2.6m. This suggests that Jean-Laurent Bonnafe is paid more than the median for the industry. Moreover, Jean-Laurent Bonnafe also holds €6.2m worth of BNP Paribas stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€1.8m	€1.8m	43%
Other	€2.5m	€2.6m	57%
Total Compensation	€4.3m	€4.4m	100%

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. BNP Paribas pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

BNP Paribas SA's Growth

BNP Paribas SA's earnings per share (EPS) grew 11% per year over the last three years. It achieved revenue growth of 6.4% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BNP Paribas SA Been A Good Investment?

We think that the total shareholder return of 88%, over three years, would leave most BNP Paribas SA shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for BNP Paribas that you should be aware of before investing.

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. 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.