Key Insights
- Société BIC's Annual General Meeting to take place on 20th of May
- Total pay for CEO Gonzalve Bich includes €866.5k salary
- The overall pay is comparable to the industry average
- Over the past three years, Société BIC's EPS fell by 10% and over the past three years, the total shareholder return was 17%
The share price of Société BIC SA (EPA:BB) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 20th of May. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. 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 Société BIC
Comparing Société BIC SA's CEO Compensation With The Industry
Our data indicates that Société BIC SA has a market capitalization of €2.4b, and total annual CEO compensation was reported as €3.1m for the year to December 2024. That's a slight decrease of 4.9% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at €867k.
In comparison with other companies in the French Commercial Services industry with market capitalizations ranging from €1.8b to €5.7b, the reported median CEO total compensation was €3.1m. This suggests that Société BIC remunerates its CEO largely in line with the industry average. Furthermore, Gonzalve Bich directly owns €5.8m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €867k | €821k | 28% |
| Other | €2.2m | €2.4m | 72% |
| Total Compensation | €3.1m | €3.2m | 100% |
On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. In Société BIC's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Société BIC SA's Growth
Over the last three years, Société BIC SA has shrunk its earnings per share by 10% per year. In the last year, its revenue is down 2.9%.
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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Société BIC SA Been A Good Investment?
With a total shareholder return of 17% over three years, Société BIC SA shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. 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.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Société BIC that you should be aware of before investing.
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.
Valuation is complex, but we're here to simplify it.
Discover if Société BIC might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.