Here's Why We Think Exail Technologies' (EPA:EXA) CEO Compensation Looks Fair

Key Insights

• Exail Technologies will host its Annual General Meeting on 25th of June
• CEO Raphael Gorge's total compensation includes salary of €120.0k
• Total compensation is 88% below industry average
• Over the past three years, Exail Technologies' EPS fell by 48% and over the past three years, the total shareholder return was 393%

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The performance at Exail Technologies (EPA:EXA) has been rather lacklustre of late and shareholders may be wondering what CEO Raphael Gorge is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 25th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

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 €1.5b, and reported total annual CEO compensation of €168k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at €120.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the French Machinery industry with market capitalizations between €872m and €2.8b, we discovered that the median CEO total compensation of that group was €1.4m. This suggests that Raphael Gorge is paid below the industry median. Furthermore, Raphael Gorge directly owns €8.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. There isn't a significant difference between Exail Technologies and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Exail Technologies' Growth Numbers

Over the last three years, Exail Technologies has shrunk its earnings per share by 48% per year. Its revenue is up 15% over the last year.

Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

Boasting a total shareholder return of 393% over three years, Exail Technologies has done well by shareholders. 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.

In Summary...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Exail Technologies that investors should be aware of in a dynamic business environment.

Switching gears from Exail Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.