What Did Carrefour SA's (EPA:CA) CEO Take Home Last Year?

Alexandre Bompard became the CEO of Carrefour SA (EPA:CA) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Carrefour

How Does Alexandre Bompard's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Carrefour SA has a market cap of €12b, and reported total annual CEO compensation of €7.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.5m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over €7.3b and the median CEO total compensation was €3.2m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.

As you can see, Alexandre Bompard is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Carrefour SA is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Carrefour has changed from year to year.

Is Carrefour SA Growing?

On average over the last three years, Carrefour SA has shrunk earnings per share by 93% each year (measured with a line of best fit). Revenue was pretty flat on last year.

Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Carrefour SA Been A Good Investment?

Given the total loss of 27% over three years, many shareholders in Carrefour SA are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at Carrefour SA with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! So you may want to check if insiders are buying Carrefour shares with their own money (free access).

Important note: Carrefour may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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