In 2007 Pierre-André de Chalendar was appointed CEO of Compagnie de Saint-Gobain SA (EPA:SGO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Pierre-André de Chalendar’s Compensation Compare With Similar Sized Companies?
Our data indicates that Compagnie de Saint-Gobain SA is worth €17.5b, and total annual CEO compensation is €5m. We note that’s an increase of 13% above last year. When we examined a group of companies with market caps over €7.0b, we found that their median CEO compensation was €4m.
So Pierre-André de Chalendar receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Compagnie de Saint-Gobain has changed over time.
Is Compagnie de Saint-Gobain SA Growing?
Over the last three years Compagnie de Saint-Gobain SA has grown its earnings per share (EPS) by an average of 57% per year. Its revenue is up 3.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Compagnie de Saint-Gobain SA Been A Good Investment?
Since shareholders would have lost about 7.7% over three years, some Compagnie de Saint-Gobain SA shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Pierre-André de Chalendar is paid around what is normal the leaders of larger companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Compagnie de Saint-Gobain SA.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.