It's Unlikely That Shareholders Will Increase Synergie SE's (EPA:SDG) Compensation By Much This Year

Key Insights

• Synergie will host its Annual General Meeting on 4th of June
• CEO Victorien Vaney's total compensation includes salary of €1.18m
• The overall pay is comparable to the industry average
• Over the past three years, Synergie's EPS fell by 2.2% and over the past three years, the total shareholder return was 4.4%

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The anaemic share price growth at Synergie SE (EPA:SDG) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. The upcoming AGM on 4th of June may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

View our latest analysis for Synergie

Comparing Synergie SE's CEO Compensation With The Industry

At the time of writing, our data shows that Synergie SE has a market capitalization of €763m, and reported total annual CEO compensation of €1.2m for the year to December 2024. There was no change in the compensation compared to last year. We note that the salary portion, which stands at €1.18m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the French Professional Services industry with market caps ranging from €354m to €1.4b, we found that the median CEO total compensation was €1.0m. From this we gather that Victorien Vaney is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Synergie is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. 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.

A Look at Synergie SE's Growth Numbers

Synergie SE has reduced its earnings per share by 2.2% a year over the last three years. Its revenue is up 2.5% over the last year.

A lack of EPS improvement is not good to see. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Synergie SE Been A Good Investment?

With a total shareholder return of 4.4% over three years, Synergie SE has done okay by shareholders, but there's always room for improvement. 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...

Victorien receives almost all of their compensation through a salary. While it's true that the share price growth hasn't been bad, it's hard to overlook the lack of earnings growth and this makes us question whether there will be any strong catalyst for the stock to improve. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Synergie (free visualization of insider trades).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.