Here's Why Accor SA's (EPA:AC) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Accor will host its Annual General Meeting on 31st of May
• Total pay for CEO Sebastien Marie Bazin includes €950.0k salary
• The overall pay is comparable to the industry average
• Accor's EPS grew by 133% over the past three years while total shareholder return over the past three years was 28%

CEO Sebastien Marie Bazin has done a decent job of delivering relatively good performance at Accor SA (EPA:AC) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 31st of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Accor

How Does Total Compensation For Sebastien Marie Bazin Compare With Other Companies In The Industry?

At the time of writing, our data shows that Accor SA has a market capitalization of €9.7b, and reported total annual CEO compensation of €5.5m for the year to December 2023. We note that's an increase of 12% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €950k.

On comparing similar companies in the French Hospitality industry with market capitalizations above €7.4b, we found that the median total CEO compensation was €5.3m. This suggests that Accor remunerates its CEO largely in line with the industry average. Moreover, Sebastien Marie Bazin also holds €20m worth of Accor stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	€950k	€950k	17%
Other	€4.6m	€4.0m	83%
Total Compensation	€5.5m	€4.9m	100%

Speaking on an industry level, nearly 41% of total compensation represents salary, while the remainder of 59% is other remuneration. Accor sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Accor SA's Growth Numbers

Accor SA's earnings per share (EPS) grew 133% per year over the last three years. It achieved revenue growth of 20% 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. 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 Accor SA Been A Good Investment?

Accor SA has served shareholders reasonably well, with a total return of 28% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Accor that you should be aware of before investing.

Important note: Accor 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.

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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.