How Much Is Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France (EPA:CAF) Paying Its CEO?

This article will reflect on the compensation paid to Olivier-Eric Gavalda who has served as CEO of Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France (EPA:CAF) since 2016. This analysis will also assess whether Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France

Comparing Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France's CEO Compensation With the industry

According to our data, Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France has a market capitalization of €2.1b, and paid its CEO total annual compensation worth €411k over the year to December 2019. That's a notable decrease of 23% on last year. Notably, the salary of €411k is the entirety of the CEO compensation.

On comparing similar companies from the same industry with market caps ranging from €1.6b to €5.3b, we found that the median CEO total compensation was €881k. In other words, Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France pays its CEO lower than the industry median.

On an industry level, around 93% of total compensation represents salary and 6.5% is other remuneration. Speaking on a company level, Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France's Growth Numbers

Over the last three years, Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France has shrunk its earnings per share by 2.6% per year. Its revenue is down 5.1% over the previous year.

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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France Been A Good Investment?

Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France has generated a total shareholder return of 7.8% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we have not been overly impressed by shareholder returns, EPS growth has been negative over the last three years, a real headache for the company. We can't categorize CEO compensation as high, but shareholders might object to a raise at this stage, considering overall poor performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France that investors should think about before committing capital to this stock.

Important note: Caisse Régionale de Crédit Agricole Mutuel de Paris et d'Ile-de-France is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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