Here's Why Séché Environnement SA's (EPA:SCHP) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Séché Environnement to hold its Annual General Meeting on 25th of April
• Total pay for CEO Maxime Seche includes €500.0k salary
• Total compensation is similar to the industry average
• Séché Environnement's total shareholder return over the past three years was 8.1% while its EPS grew by 7.9% over the past three years

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Performance at Séché Environnement SA (EPA:SCHP) has been reasonably good and CEO Maxime Seche has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of April. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Séché Environnement

Comparing Séché Environnement SA's CEO Compensation With The Industry

At the time of writing, our data shows that Séché Environnement SA has a market capitalization of €608m, and reported total annual CEO compensation of €529k for the year to December 2024. That's a notable increase of 18% on last year. Notably, the salary which is €500.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the French Commercial Services industry with market capitalizations between €351m and €1.4b, we discovered that the median CEO total compensation of that group was €605k. From this we gather that Maxime Seche is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 44% of total compensation out of all the companies we analyzed, while other remuneration made up 56% of the pie. According to our research, Séché Environnement has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

Séché Environnement SA's Growth

Over the past three years, Séché Environnement SA has seen its earnings per share (EPS) grow by 7.9% per year. It achieved revenue growth of 9.3% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Séché Environnement SA Been A Good Investment?

Séché Environnement SA has generated a total shareholder return of 8.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Séché Environnement that investors should look into moving forward.

Switching gears from Séché Environnement, 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.

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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.