Here's Why Shareholders Will Not Be Complaining About Hermès International Société en commandite par actions' (EPA:RMS) CEO Pay Packet

Key Insights

• Hermès International Société en commandite par actions to hold its Annual General Meeting on 30th of April
• Total pay for CEO Axel Dumas includes €2.66m salary
• Total compensation is similar to the industry average
• Hermès International Société en commandite par actions' total shareholder return over the past three years was 102% while its EPS grew by 23% over the past three years

We check all companies for important risks. See what we found for Hermès International Société en commandite par actions in our free report.

We have been pretty impressed with the performance at Hermès International Société en commandite par actions (EPA:RMS) recently and CEO Axel Dumas deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 30th of April. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Hermès International Société en commandite par actions

Comparing Hermès International Société en commandite par actions' CEO Compensation With The Industry

At the time of writing, our data shows that Hermès International Société en commandite par actions has a market capitalization of €242b, and reported total annual CEO compensation of €7.3m for the year to December 2024. Notably, that's an increase of 25% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €2.7m.

In comparison with other companies in the France Luxury industry with market capitalizations over €7.0b, the reported median total CEO compensation was €6.4m. So it looks like Hermès International Société en commandite par actions compensates Axel Dumas in line with the median for the industry. Furthermore, Axel Dumas directly owns €27m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	€2.7m	€2.2m	36%
Other	€4.6m	€3.6m	64%
Total Compensation	€7.3m	€5.9m	100%

Talking in terms of the industry, salary represented approximately 36% of total compensation out of all the companies we analyzed, while other remuneration made up 64% of the pie. Our data reveals that Hermès International Société en commandite par actions allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Hermès International Société en commandite par actions' Growth

Hermès International Société en commandite par actions's earnings per share (EPS) grew 23% per year over the last three years. Its revenue is up 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hermès International Société en commandite par actions Been A Good Investment?

Most shareholders would probably be pleased with Hermès International Société en commandite par actions for providing a total return of 102% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hermès International Société en commandite par actions (free visualization of insider trades).

Important note: Hermès International Société en commandite par actions 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.