It Looks Like SEB SA's (EPA:SK) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• SEB will host its Annual General Meeting on 20th of May
• Salary of €900.0k is part of CEO Stanislas de Gramont's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, SEB's EPS fell by 20% and over the past three years, the total loss to shareholders 8.6%

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Shareholders will probably not be too impressed with the underwhelming results at SEB SA (EPA:SK) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 20th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for SEB

Comparing SEB SA's CEO Compensation With The Industry

According to our data, SEB SA has a market capitalization of €4.9b, and paid its CEO total annual compensation worth €3.3m over the year to December 2024. That's a notable increase of 9.8% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €900k.

On comparing similar companies from the French Consumer Durables industry with market caps ranging from €3.6b to €11b, we found that the median CEO total compensation was €3.3m. So it looks like SEB compensates Stanislas de Gramont in line with the median for the industry.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. SEB pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

SEB SA's Growth

Over the last three years, SEB SA has shrunk its earnings per share by 20% per year. Its revenue is up 3.2% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has SEB SA Been A Good Investment?

With a three year total loss of 8.6% for the shareholders, SEB SA would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for SEB you should be aware of, and 1 of them is concerning.

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. 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.