The CEO of Piscines Desjoyaux SA (EPA:ALPDX) is Jean-Louis Desjoyaux, 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.
See our latest analysis for Piscines Desjoyaux
Comparing Piscines Desjoyaux SA’s CEO Compensation With the industry
According to our data, Piscines Desjoyaux SA has a market capitalization of €147m, and paid its CEO total annual compensation worth €165k over the year to August 2019. We note that’s a small decrease of 4.5% on last year. We note that the salary portion, which stands at €158.2k constitutes the majority of total compensation received by the CEO.
On comparing similar companies from the same industry with market caps ranging from €86m to €344m, we found that the median CEO total compensation was €298k. This suggests that Jean-Louis Desjoyaux is paid below the industry median.
| Component | 2019 | 2017 | Proportion (2019) |
| Salary | €158k | €160k | 96% |
| Other | €7.2k | €14k | 4% |
| Total Compensation | €165k | €173k | 100% |
On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. Piscines Desjoyaux has gone down a largely traditional route, paying Jean-Louis Desjoyaux a high salary, giving it preference over non-salary benefits. 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 Piscines Desjoyaux SA’s Growth Numbers
Piscines Desjoyaux SA’s earnings per share (EPS) grew 21% per year over the last three years. In the last year, its revenue is up 14%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Piscines Desjoyaux SA Been A Good Investment?
With a total shareholder return of 31% over three years, Piscines Desjoyaux SA shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Jean-Louis receives almost all of their compensation through a salary. As we touched on above, Piscines Desjoyaux SA is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But over the last three years, earnings growth has been growing rapidly, which is a great sign for the company. However, shareholder returns have failed to show the same level of growth. Shareholder returns could be better but we’re pleased with the positive EPS growth. So it’s fair to say Jean-Louis has done quite well despite modest compensation and shareholders might not be averse to a raise.
CEO compensation can have a massive impact on performance, but it’s just one element. We’ve identified 1 warning sign for Piscines Desjoyaux that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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