Does Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative's (EPA:CRLA) CEO Salary Compare Well With The Performance Of The Company?

Véronique Flachaire has been the CEO of Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative (EPA:CRLA) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative.

View our latest analysis for Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative

Comparing Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative's CEO Compensation With the industry

According to our data, Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative has a market capitalization of €1.2b, and paid its CEO total annual compensation worth €348k over the year to December 2019. That's a notable decrease of 30% on last year. We note that the salary portion, which stands at €323.4k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from €818m to €2.6b, the reported median CEO total compensation was €844k. Accordingly, Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative pays its CEO under the industry median.

Talking in terms of the industry, salary represented approximately 93% of total compensation out of all the companies we analyzed, while other remuneration made up 6.5% of the pie. Although there is a difference in how total compensation is set, Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative's Growth Numbers

Over the last three years, Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative has shrunk its earnings per share by 9.4% per year. It saw its revenue drop 15% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative Been A Good Investment?

Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As we noted earlier, Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative pays its CEO lower than the norm for similar-sized companies belonging to the same industry. 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. So, although we can't say CEO compensation is very high, shareholders might want to see an improvement in overall performance before agreeing that Véronique deserves a bump.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative you should be aware of, and 1 of them is a bit unpleasant.

Switching gears from Caisse Régionale de Crédit Agricole Mutuel du Languedoc 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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