A Look At Somfy's (EPA:SO) CEO Remuneration

The CEO of Somfy SA (EPA:SO) is Jean Despature, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Somfy

Comparing Somfy SA's CEO Compensation With the industry

At the time of writing, our data shows that Somfy SA has a market capitalization of €4.4b, and reported total annual CEO compensation of €1.6m for the year to December 2019. Notably, that's an increase of 30% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €612k.

For comparison, other companies in the same industry with market capitalizations ranging between €3.4b and €10b had a median total CEO compensation of €2.5m. That is to say, Jean Despature is paid under the industry median.

On an industry level, roughly 35% of total compensation represents salary and 65% is other remuneration. Somfy pays out 39% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Somfy SA's Growth Numbers

Somfy SA has seen its earnings per share (EPS) increase by 4.2% a year over the past three years. In the last year, its revenue changed by just 0.2%.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is 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 Somfy SA Been A Good Investment?

Most shareholders would probably be pleased with Somfy SA for providing a total return of 59% 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.

In Summary...

As we noted earlier, Somfy pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, shareholder returns are rock solid over the past three years, and that’s undoubtedly a good sign. As a result of the juicy return to investors, CEO compensation may well be quite reasonable.

Shareholders may want to check for free if Somfy insiders are buying or selling shares.

Switching gears from Somfy, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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