We Think Some Shareholders May Hesitate To Increase Dassault Aviation société anonyme's (EPA:AM) CEO Compensation

Key Insights

• Dassault Aviation société anonyme will host its Annual General Meeting on 16th of May
• Salary of €1.86m is part of CEO Eric Trappier's total remuneration
• The overall pay is 67% above the industry average
• Over the past three years, Dassault Aviation société anonyme's EPS grew by 18% and over the past three years, the total shareholder return was 123%

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Under the guidance of CEO Eric Trappier, Dassault Aviation société anonyme (EPA:AM) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of May. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Dassault Aviation société anonyme

How Does Total Compensation For Eric Trappier Compare With Other Companies In The Industry?

According to our data, Dassault Aviation société anonyme has a market capitalization of €25b, and paid its CEO total annual compensation worth €6.0m over the year to December 2024. That's a notable increase of 8.7% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.9m.

On comparing similar companies in the French Aerospace & Defense industry with market capitalizations above €7.1b, we found that the median total CEO compensation was €3.6m. Hence, we can conclude that Eric Trappier is remunerated higher than the industry median. Furthermore, Eric Trappier directly owns €38m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 31% of total compensation represents salary, while the remainder of 69% is other remuneration. Our data reveals that Dassault Aviation société anonyme allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Dassault Aviation société anonyme's Growth Numbers

Over the past three years, Dassault Aviation société anonyme has seen its earnings per share (EPS) grow by 18% per year. Its revenue is up 29% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Dassault Aviation société anonyme Been A Good Investment?

We think that the total shareholder return of 123%, over three years, would leave most Dassault Aviation société anonyme shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Dassault Aviation société anonyme 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. 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.