Stock Analysis

How Much Is SA Catana Group (EPA:CATG) CEO Getting Paid?

ENXTPA:CATG
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The CEO of SA Catana Group (EPA:CATG) is Olivier Poncin, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether SA Catana Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for SA Catana Group

How Does Total Compensation For Olivier Poncin Compare With Other Companies In The Industry?

At the time of writing, our data shows that SA Catana Group has a market capitalization of €109m, and reported total annual CEO compensation of €87k for the year to August 2020. That's a modest increase of 3.2% on the prior year. Notably, the salary which is €84.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below €164m, we found that the median total CEO compensation was €249k. This suggests that Olivier Poncin is paid below the industry median. Furthermore, Olivier Poncin directly owns €777k worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary €84k €84k 97%
Other €2.7k - 3%
Total Compensation€87k €84k100%

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Investors will find it interesting that SA Catana Group pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ENXTPA:CATG CEO Compensation January 23rd 2021

A Look at SA Catana Group's Growth Numbers

SA Catana Group has seen its earnings per share (EPS) increase by 45% a year over the past three years. Its revenue is up 6.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SA Catana Group Been A Good Investment?

Given the total shareholder loss of 4.8% over three years, many shareholders in SA Catana Group are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

SA Catana Group pays its CEO a majority of compensation through a salary. As we noted earlier, SA Catana Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However we must not forget that the EPS growth has been very strong over three years. Although we would've liked to see positive investor returns, it would be bold of us to criticize CEO compensation when EPS are up. But shareholders will likely want to hold off on any raise for Olivier until investor returns are positive.

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 SA Catana Group that you should be aware of before investing.

Switching gears from SA Catana Group, 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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