How Much Is GECI International S.A. (EPA:GECP) CEO Getting Paid?

The CEO of GECI International S.A. (EPA:GECP) is Serge Bitboul, 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.

Check out our latest analysis for GECI International

How Does Total Compensation For Serge Bitboul Compare With Other Companies In The Industry?

According to our data, GECI International S.A. has a market capitalization of €7.6m, and paid its CEO total annual compensation worth €239k over the year to March 2020. Notably, that's an increase of 31% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth €239k.

In comparison with other companies in the industry with market capitalizations under €165m, the reported median total CEO compensation was €258k. From this we gather that Serge Bitboul is paid around the median for CEOs in the industry. Furthermore, Serge Bitboul directly owns €694k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. At the company level, GECI International pays Serge Bitboul solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

GECI International S.A.'s Growth

GECI International S.A. has seen its earnings per share (EPS) increase by 29% a year over the past three years. In the last year, its revenue is down 23%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has GECI International S.A. Been A Good Investment?

Given the total shareholder loss of 89% over three years, many shareholders in GECI International S.A. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

GECI International pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Serge is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, EPS growth is positive over the same time frame. Overall, we wouldn't say Serge is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for GECI International (3 are a bit concerning!) that you should be aware of before investing here.

Important note: GECI International is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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