What Did Groupe Pizzorno Environnement's (EPA:GPE) CEO Take Home Last Year?

Frederic Devalle has been the CEO of Groupe Pizzorno Environnement (EPA:GPE) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Groupe Pizzorno Environnement

Comparing Groupe Pizzorno Environnement's CEO Compensation With the industry

Our data indicates that Groupe Pizzorno Environnement has a market capitalization of €73m, and total annual CEO compensation was reported as €191k for the year to December 2019. That is, the compensation was roughly the same as last year. Notably, the salary of €191k is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below €163m, reported a median total CEO compensation of €264k. From this we gather that Frederic Devalle is paid around the median for CEOs in the industry.

On an industry level, around 91% of total compensation represents salary and 8.7% is other remuneration. Speaking on a company level, Groupe Pizzorno Environnement prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Groupe Pizzorno Environnement's Growth

Over the last three years, Groupe Pizzorno Environnement has shrunk its earnings per share by 64% per year. Its revenue is down 11% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Groupe Pizzorno Environnement Been A Good Investment?

Since shareholders would have lost about 26% over three years, some Groupe Pizzorno Environnement investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Groupe Pizzorno Environnement rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Groupe Pizzorno Environnement is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Groupe Pizzorno Environnement that investors should be aware of in a dynamic business environment.

Important note: Groupe Pizzorno Environnement 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.

If you decide to trade Groupe Pizzorno Environnement, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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