Why We Think The CEO Of Derichebourg SA (EPA:DBG) May Soon See A Pay Rise

The solid performance at Derichebourg SA (EPA:DBG) has been impressive and shareholders will probably be pleased to know that CEO Daniel Derichebourg has delivered. At the upcoming AGM on 27 January 2022, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Derichebourg

How Does Total Compensation For Daniel Derichebourg Compare With Other Companies In The Industry?

Our data indicates that Derichebourg SA has a market capitalization of €1.9b, and total annual CEO compensation was reported as €469k for the year to September 2021. That's a notable increase of 97% on last year. In particular, the salary of €449.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from €882m to €2.8b, we found that the median CEO total compensation was €988k. In other words, Derichebourg pays its CEO lower than the industry median.

Component	2021	2020	Proportion (2021)
Salary	€449k	€228k	96%
Other	€20k	€10k	4%
Total Compensation	€469k	€238k	100%

Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% 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.

Derichebourg SA's Growth

Derichebourg SA has seen its earnings per share (EPS) increase by 38% a year over the past three years. Its revenue is up 47% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Derichebourg SA Been A Good Investment?

We think that the total shareholder return of 218%, over three years, would leave most Derichebourg SA shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Daniel receives almost all of their compensation through a salary. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 1 warning sign for Derichebourg that investors should look into moving forward.

Switching gears from Derichebourg, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.