How Should Investors React To Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative's (EPA:CRBP2) CEO Pay?

Guillaume Rousseau has been the CEO of Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative (EPA:CRBP2) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative

How Does Total Compensation For Guillaume Rousseau Compare With Other Companies In The Industry?

According to our data, Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative has a market capitalization of €1.3b, and paid its CEO total annual compensation worth €414k over the year to December 2019. This means that the compensation hasn't changed much from last year. In particular, the salary of €389.3k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between €823m and €2.6b had a median total CEO compensation of €836k. In other words, Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative pays its CEO lower than the industry median.

Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 6.5% is other remuneration. Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative's Growth

Over the last three years, Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative has shrunk its earnings per share by 11% per year. In the last year, its revenue is down 15%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative Been A Good Investment?

With a three year total loss of 2.4% for the shareholders, Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative pays its CEO lower than the norm for similar-sized companies belonging to the same industry. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. It's tough to say that Guillaume is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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