How Should Investors Feel About Barbara Bui's (EPA:BUI) CEO Remuneration?

By
Simply Wall St
Published
September 29, 2020
ENXTPA:BUI
Source: Shutterstock

The CEO of Barbara Bui SA (EPA:BUI) is William Halimi, 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 Barbara Bui

How Does Total Compensation For William Halimi Compare With Other Companies In The Industry?

According to our data, Barbara Bui SA has a market capitalization of €1.2m, and paid its CEO total annual compensation worth €180k over the year to December 2019. This means that the compensation hasn't changed much from last year. In particular, the salary of €157.2k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under €170m, the reported median total CEO compensation was €291k. Accordingly, Barbara Bui pays its CEO under the industry median. Furthermore, William Halimi directly owns €482k worth of shares in the company.

Component20192018Proportion (2019)
Salary €157k €157k 87%
Other €23k €23k 13%
Total Compensation€180k €180k100%

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. Barbara Bui is paying a higher share of its remuneration through a 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.

ceo-compensation
ENXTPA:BUI CEO Compensation September 30th 2020

Barbara Bui SA's Growth

Barbara Bui SA's earnings per share (EPS) grew 8.1% per year over the last three years. Its revenue is down 19% over the previous year.

We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Barbara Bui SA Been A Good Investment?

Given the total shareholder loss of 86% over three years, many shareholders in Barbara Bui SA are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Barbara Bui 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 the company isn't growing and total shareholder returns have been disappointing. So while we don't think, William is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Barbara Bui that investors should think about before committing capital to this stock.

Switching gears from Barbara Bui, 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. 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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