What Does Manitou BF's (EPA:MTU) CEO Pay Reveal?

This article will reflect on the compensation paid to Michel Denis who has served as CEO of Manitou BF SA (EPA:MTU) since 2014. This analysis will also assess whether Manitou BF pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Manitou BF

How Does Total Compensation For Michel Denis Compare With Other Companies In The Industry?

At the time of writing, our data shows that Manitou BF SA has a market capitalization of €804m, and reported total annual CEO compensation of €1.1m for the year to December 2019. We note that's a decrease of 22% compared to last year. In particular, the salary of €609.0k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the industry with market capitalizations between €338m and €1.4b, we discovered that the median CEO total compensation of that group was €1.1m. So it looks like Manitou BF compensates Michel Denis in line with the median for the industry.

Speaking on an industry level, nearly 68% of total compensation represents salary, while the remainder of 32% is other remuneration. In Manitou BF's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Manitou BF SA's Growth

Manitou BF SA saw earnings per share stay pretty flat over the last three years. In the last year, its revenue is down 20%.

A lack of EPS improvement is not good to see. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Manitou BF SA Been A Good Investment?

With a three year total loss of 22% for the shareholders, Manitou BF SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Manitou BF pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for Manitou BF that investors should look into moving forward.

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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