Most Shareholders Will Probably Agree With Thales S.A.'s (EPA:HO) CEO Compensation

Key Insights

• Thales to hold its Annual General Meeting on 16th of May
• Total pay for CEO Patrice Caine includes €1.00m salary
• Total compensation is similar to the industry average
• Thales' total shareholder return over the past three years was 137% while its EPS grew by 2.5% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Thales. Read for free now.

Under the guidance of CEO Patrice Caine, Thales S.A. (EPA:HO) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of May. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Thales

How Does Total Compensation For Patrice Caine Compare With Other Companies In The Industry?

Our data indicates that Thales S.A. has a market capitalization of €52b, and total annual CEO compensation was reported as €3.6m for the year to December 2024. Notably, that's an increase of 25% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.0m.

For comparison, other companies in the French Aerospace & Defense industry with market capitalizations above €7.1b, reported a median total CEO compensation of €3.6m. From this we gather that Patrice Caine is paid around the median for CEOs in the industry. Moreover, Patrice Caine also holds €6.6m worth of Thales stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€1.0m	€850k	28%
Other	€2.6m	€2.0m	72%
Total Compensation	€3.6m	€2.9m	100%

Speaking on an industry level, nearly 31% of total compensation represents salary, while the remainder of 69% is other remuneration. Although there is a difference in how total compensation is set, Thales more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Thales S.A.'s Growth Numbers

Thales S.A.'s earnings per share (EPS) grew 2.5% per year over the last three years. Its revenue is up 12% over the last year.

This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Thales S.A. Been A Good Investment?

Boasting a total shareholder return of 137% over three years, Thales S.A. 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.

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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Thales that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.