What Can We Conclude About Lucibel's (EPA:ALUCI) CEO Pay?

The CEO of Lucibel SA (EPA:ALUCI) is Frédéric Granotier, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Lucibel.

View our latest analysis for Lucibel

Comparing Lucibel SA's CEO Compensation With the industry

According to our data, Lucibel SA has a market capitalization of €17m, and paid its CEO total annual compensation worth €308k over the year to December 2019. That's just a smallish increase of 5.1% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €130k.

In comparison with other companies in the industry with market capitalizations under €166m, the reported median total CEO compensation was €262k. From this we gather that Frédéric Granotier is paid around the median for CEOs in the industry. Moreover, Frédéric Granotier also holds €2.0m worth of Lucibel stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 35% of total compensation represents salary, while the remainder of 65% is other remuneration. Lucibel pays out 42% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Lucibel SA's Growth

Lucibel SA has reduced its earnings per share by 13% a year over the last three years. It achieved revenue growth of 204% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Lucibel SA Been A Good Investment?

Since shareholders would have lost about 59% over three years, some Lucibel SA investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Lucibel pays its CEO in line with similar-sized companies belonging to the same industry. But revenue growth seems to be inching northward, a heartening sign for the company. In contrast, over the same time span, shareholder returns are negative. EPS growth is bleak as well, adding fuel to the fire. Overall, we wouldn't say CEO is highly paid, but shareholders might not go for a raise before business metrics start to improve precipitously.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Lucibel that investors should look into moving forward.

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. 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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