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In 1989 Martin Bouygues was appointed CEO of Bouygues SA (EPA:EN). First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Martin Bouygues’s Compensation Compare With Similar Sized Companies?
Our data indicates that Bouygues SA is worth €12b, and total annual CEO compensation is €2.8m. (This number is for the twelve months until December 2018). That’s a fairly small increase of 4.8% on year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €920k. We looked at a group of companies with market capitalizations over €7.0b and the median CEO total compensation was €3.4m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
So Martin Bouygues receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Bouygues, below.
Is Bouygues SA Growing?
On average over the last three years, Bouygues SA has grown earnings per share (EPS) by 32% each year (using a line of best fit). In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Has Bouygues SA Been A Good Investment?
Most shareholders would probably be pleased with Bouygues SA for providing a total return of 38% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Martin Bouygues is paid around what is normal the leaders of larger companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Bouygues shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.