Does Derichebourg's (EPA:DBG) CEO Salary Compare Well With The Performance Of The Company?

This article will reflect on the compensation paid to Daniel Derichebourg who has served as CEO of Derichebourg SA (EPA:DBG) since 2006. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Derichebourg.

See our latest analysis for Derichebourg

Comparing Derichebourg SA's CEO Compensation With the industry

At the time of writing, our data shows that Derichebourg SA has a market capitalization of €1.0b, and reported total annual CEO compensation of €238k for the year to September 2020. That's a slightly lower by 4.0% over the previous year. We note that the salary portion, which stands at €228.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from €823m to €2.6b, we found that the median CEO total compensation was €1.6m. That is to say, Daniel Derichebourg is paid under the industry median.

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 8.7% is other remuneration. Derichebourg pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Derichebourg SA's Growth Numbers

Over the last three years, Derichebourg SA has shrunk its earnings per share by 35% per year. Its revenue is down 8.9% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last 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 Derichebourg SA Been A Good Investment?

Since shareholders would have lost about 12% over three years, some Derichebourg SA investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Daniel receives almost all of their compensation through a salary. As we noted earlier, Derichebourg pays its CEO lower than the norm for similar-sized companies belonging to the same industry. EPS growth has failed to impress us, and the same can be said about shareholder returns. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Derichebourg that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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