How Much is Lexibook - Linguistic Electronic System Société anonyme's (EPA:ALLEX) CEO Getting Paid?

Emmanuel Le Cottier has been the CEO of Lexibook - Linguistic Electronic System Société anonyme (EPA:ALLEX) since 2006, 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.

View our latest analysis for Lexibook - Linguistic Electronic System Société anonyme

How Does Total Compensation For Emmanuel Le Cottier Compare With Other Companies In The Industry?

According to our data, Lexibook - Linguistic Electronic System Société anonyme has a market capitalization of €9.1m, and paid its CEO total annual compensation worth €159k over the year to March 2020. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at €139.8k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under €169m, the reported median total CEO compensation was €230k. This suggests that Emmanuel Le Cottier is paid below the industry median. What's more, Emmanuel Le Cottier holds €849k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. Although there is a difference in how total compensation is set, Lexibook - Linguistic Electronic System Société anonyme more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Lexibook - Linguistic Electronic System Société anonyme's Growth Numbers

Over the past three years, Lexibook - Linguistic Electronic System Société anonyme has seen its earnings per share (EPS) grow by 90% per year. Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Lexibook - Linguistic Electronic System Société anonyme Been A Good Investment?

With a three year total loss of 31% for the shareholders, Lexibook - Linguistic Electronic System Société anonyme would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, Lexibook - Linguistic Electronic System Société anonyme is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Emmanuel is compensated fairly. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Lexibook - Linguistic Electronic System Société anonyme (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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. 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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