Why We Think Jacquet Metals SA's (EPA:JCQ) CEO Compensation Is Not Excessive At All

Key Insights

• Jacquet Metals to hold its Annual General Meeting on 27th of June
• Total pay for CEO Eric Jacquet includes €650.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Jacquet Metals' EPS fell by 66% and over the past three years, the total shareholder return was 36%

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Despite strong share price growth of 36% for Jacquet Metals SA (EPA:JCQ) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 27th of June may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Jacquet Metals

How Does Total Compensation For Eric Jacquet Compare With Other Companies In The Industry?

According to our data, Jacquet Metals SA has a market capitalization of €432m, and paid its CEO total annual compensation worth €744k over the year to December 2024. That's a notable decrease of 32% on last year. We note that the salary portion, which stands at €650.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the French Trade Distributors industry with market capitalizations ranging from €174m to €694m, the reported median CEO total compensation was €744k. This suggests that Jacquet Metals remunerates its CEO largely in line with the industry average. Moreover, Eric Jacquet also holds €206m worth of Jacquet Metals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. It's interesting to note that Jacquet Metals pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Jacquet Metals SA's Growth Numbers

Over the last three years, Jacquet Metals SA has shrunk its earnings per share by 66% per year. It saw its revenue drop 8.3% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. 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 Jacquet Metals SA Been A Good Investment?

Most shareholders would probably be pleased with Jacquet Metals SA for providing a total return of 36% 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.

To Conclude...

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. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Jacquet Metals that investors should look into moving forward.

Important note: Jacquet Metals 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.

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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.