Increases to Bénéteau S.A.'s (EPA:BEN) CEO Compensation Might Cool off for now

Key Insights

• Bénéteau will host its Annual General Meeting on 19th of June
• Salary of €405.9k is part of CEO Bruno Thivoyon's total remuneration
• The total compensation is 368% higher than the average for the industry
• Over the past three years, Bénéteau's EPS fell by 25% and over the past three years, the total shareholder return was 6.3%

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Despite Bénéteau S.A.'s (EPA:BEN) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 19th of June. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Bénéteau

How Does Total Compensation For Bruno Thivoyon Compare With Other Companies In The Industry?

According to our data, Bénéteau S.A. has a market capitalization of €691m, and paid its CEO total annual compensation worth €679k over the year to December 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of €405.9k, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the France Leisure industry with market capitalizations between €345m and €1.4b, we discovered that the median CEO total compensation of that group was €145k. Hence, we can conclude that Bruno Thivoyon is remunerated higher than the industry median.

On an industry level, around 78% of total compensation represents salary and 22% is other remuneration. Bénéteau sets aside a smaller share of compensation for salary, in comparison to the overall 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.

Bénéteau S.A.'s Growth

Over the last three years, Bénéteau S.A. has shrunk its earnings per share by 25% per year. In the last year, its revenue is down 29%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bénéteau S.A. Been A Good Investment?

With a total shareholder return of 6.3% over three years, Bénéteau S.A. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Bénéteau that investors should think about before committing capital to this stock.

Important note: Bénéteau 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.

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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.