What We Learned About Eiffage's (EPA:FGR) CEO Pay

This article will reflect on the compensation paid to Benoit de Ruffray who has served as CEO of Eiffage SA (EPA:FGR) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Eiffage.

See our latest analysis for Eiffage

Comparing Eiffage SA's CEO Compensation With the industry

Our data indicates that Eiffage SA has a market capitalization of €8.3b, and total annual CEO compensation was reported as €3.4m for the year to December 2019. That's a notable decrease of 11% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €900k.

In comparison with other companies in the industry with market capitalizations over €6.6b , the reported median total CEO compensation was €3.1m. From this we gather that Benoit de Ruffray is paid around the median for CEOs in the industry.

On an industry level, roughly 56% of total compensation represents salary and 44% is other remuneration. Eiffage sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Eiffage SA's Growth

Over the last three years, Eiffage SA has shrunk its earnings per share by 5.9% per year. In the last year, its revenue is down 5.6%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Eiffage SA Been A Good Investment?

With a three year total loss of 7.4% for the shareholders, Eiffage SA would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Benoit is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Eiffage you should be aware of, and 1 of them shouldn't be ignored.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. 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.
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