We Think Elis SA's (EPA:ELIS) CEO Compensation Looks Fair

Key Insights

• Elis will host its Annual General Meeting on 22nd of May
• Total pay for CEO Xavier Martire includes €900.0k salary
• Total compensation is similar to the industry average
• Elis' total shareholder return over the past three years was 66% while its EPS grew by 42% over the past three years

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It would be hard to discount the role that CEO Xavier Martire has played in delivering the impressive results at Elis SA (EPA:ELIS) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 22nd of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Elis

Comparing Elis SA's CEO Compensation With The Industry

Our data indicates that Elis SA has a market capitalization of €5.3b, and total annual CEO compensation was reported as €4.3m for the year to December 2024. We note that's a small decrease of 3.3% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €900k.

On comparing similar companies from the French Commercial Services industry with market caps ranging from €3.6b to €11b, we found that the median CEO total compensation was €3.8m. So it looks like Elis compensates Xavier Martire in line with the median for the industry. Furthermore, Xavier Martire directly owns €2.2m worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	€900k	€900k	21%
Other	€3.4m	€3.6m	79%
Total Compensation	€4.3m	€4.5m	100%

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. It's interesting to note that Elis allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Elis SA's Growth Numbers

Elis SA has seen its earnings per share (EPS) increase by 42% a year over the past three years. It achieved revenue growth of 6.1% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Elis SA Been A Good Investment?

Most shareholders would probably be pleased with Elis SA for providing a total return of 66% over three years. 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...

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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Elis that investors should think about before committing capital to this stock.

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. 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.