Here's Why Exail Technologies' (EPA:EXA) CEO Might See A Pay Rise Soon

Key Insights

• Exail Technologies will host its Annual General Meeting on 18th of June
• Total pay for CEO Raphael Gorge includes €120.0k salary
• Total compensation is 80% below industry average
• Exail Technologies' total shareholder return over the past three years was 78% while its EPS was down 120% over the past three years

Shareholders will be pleased by the robust performance of Exail Technologies (EPA:EXA) recently and this will be kept in mind in the upcoming AGM on 18th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Exail Technologies

How Does Total Compensation For Raphael Gorge Compare With Other Companies In The Industry?

At the time of writing, our data shows that Exail Technologies has a market capitalization of €345m, and reported total annual CEO compensation of €164k for the year to December 2023. Notably, that's a decrease of 66% over the year before. In particular, the salary of €120.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the French Machinery industry with market capitalizations ranging between €186m and €745m had a median total CEO compensation of €822k. This suggests that Raphael Gorge is paid below the industry median. Furthermore, Raphael Gorge directly owns €1.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	€120k	€231k	73%
Other	€44k	€247k	27%
Total Compensation	€164k	€478k	100%

On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. There isn't a significant difference between Exail Technologies and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Exail Technologies' Growth

Over the last three years, Exail Technologies has shrunk its earnings per share by 120% per year. Its revenue is up 82% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Exail Technologies Been A Good Investment?

Most shareholders would probably be pleased with Exail Technologies for providing a total return of 78% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Exail Technologies that investors should think about before committing capital to this stock.

Important note: Exail Technologies 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.