Increases to CEO Compensation Might Be Put On Hold For Now at Vinci SA (EPA:DG)

Key Insights

• Vinci to hold its Annual General Meeting on 9th of April
• Salary of €1.30m is part of CEO Xavier M. Huillard's total remuneration
• The total compensation is 34% higher than the average for the industry
• Over the past three years, Vinci's EPS grew by 55% and over the past three years, the total shareholder return was 45%

Under the guidance of CEO Xavier M. Huillard, Vinci SA (EPA:DG) has performed reasonably well recently. As shareholders go into the upcoming AGM on 9th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Vinci

Comparing Vinci SA's CEO Compensation With The Industry

At the time of writing, our data shows that Vinci SA has a market capitalization of €67b, and reported total annual CEO compensation of €6.7m for the year to December 2023. That's a notable increase of 12% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.3m.

In comparison with other companies in the France Construction industry with market capitalizations over €7.4b, the reported median total CEO compensation was €5.0m. This suggests that Xavier M. Huillard is paid more than the median for the industry. What's more, Xavier M. Huillard holds €41m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	€1.3m	€1.3m	19%
Other	€5.4m	€4.7m	81%
Total Compensation	€6.7m	€6.0m	100%

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. In Vinci's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Vinci SA's Growth

Vinci SA's earnings per share (EPS) grew 55% per year over the last three years. In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vinci SA Been A Good Investment?

Most shareholders would probably be pleased with Vinci SA for providing a total return of 45% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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 2 warning signs for Vinci that investors should look into moving forward.

Important note: Vinci 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.