Does Carrefour's (EPA:CA) CEO Salary Compare Well With The Performance Of The Company?

This article will reflect on the compensation paid to Alexandre Bompard who has served as CEO of Carrefour SA (EPA:CA) since 2017. This analysis will also assess whether Carrefour pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Carrefour

Comparing Carrefour SA's CEO Compensation With the industry

At the time of writing, our data shows that Carrefour SA has a market capitalization of €11b, and reported total annual CEO compensation of €7.3m for the year to December 2019. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €1.5m.

For comparison, other companies in the industry with market capitalizations above €6.8b, reported a median total CEO compensation of €2.7m. Accordingly, our analysis reveals that Carrefour SA pays Alexandre Bompard north of the industry median. Furthermore, Alexandre Bompard directly owns €1.8m worth of shares in the company.

On an industry level, around 39% of total compensation represents salary and 61% is other remuneration. In Carrefour's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Carrefour SA's Growth

Carrefour SA has reduced its earnings per share by 20% a year over the last three years. In the last year, its revenue changed by just 0.5%.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Carrefour SA Been A Good Investment?

With a three year total loss of 14% for the shareholders, Carrefour SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Carrefour pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Carrefour that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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