It Looks Like Casino, Guichard-Perrachon S.A.'s (EPA:CO) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Casino Guichard-Perrachon will host its Annual General Meeting on 11th of June
• CEO Jean-Charles Naouri's total compensation includes salary of €825.0k
• The overall pay is 47% above the industry average
• Over the past three years, Casino Guichard-Perrachon's EPS fell by 69% and over the past three years, the total loss to shareholders 100%

Casino, Guichard-Perrachon S.A. (EPA:CO) has not performed well recently and CEO Jean-Charles Naouri will probably need to up their game. At the upcoming AGM on 11th of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Casino Guichard-Perrachon

Comparing Casino, Guichard-Perrachon S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Casino, Guichard-Perrachon S.A. has a market capitalization of €1.5b, and reported total annual CEO compensation of €2.1m for the year to December 2023. Notably, that's a decrease of 8.5% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at €825k.

On examining similar-sized companies in the France Consumer Retailing industry with market capitalizations between €918m and €2.9b, we discovered that the median CEO total compensation of that group was €1.4m. Accordingly, our analysis reveals that Casino, Guichard-Perrachon S.A. pays Jean-Charles Naouri north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	€825k	€825k	40%
Other	€1.3m	€1.4m	60%
Total Compensation	€2.1m	€2.3m	100%

On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. Casino Guichard-Perrachon is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Casino, Guichard-Perrachon S.A.'s Growth Numbers

Casino, Guichard-Perrachon S.A. has reduced its earnings per share by 69% a year over the last three years. In the last year, its revenue is down 6.2%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Casino, Guichard-Perrachon S.A. Been A Good Investment?

The return of -100% over three years would not have pleased Casino, Guichard-Perrachon S.A. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Casino Guichard-Perrachon (2 are potentially serious!) that you should be aware of before investing here.

Switching gears from Casino Guichard-Perrachon, 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. 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.