We Think Shareholders Will Probably Be Generous With Accor SA's (EPA:AC) CEO Compensation

Key Insights

• Accor's Annual General Meeting to take place on 28th of May
• Total pay for CEO Sebastien Marie Bazin includes €950.0k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Accor's EPS grew by 68% and over the past three years, the total shareholder return was 73%

Our free stock report includes 1 warning sign investors should be aware of before investing in Accor. Read for free now.

It would be hard to discount the role that CEO Sebastien Marie Bazin has played in delivering the impressive results at Accor SA (EPA:AC) recently. Coming up to the next AGM on 28th of May, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Accor

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

Our data indicates that Accor SA has a market capitalization of €11b, and total annual CEO compensation was reported as €5.5m for the year to December 2024. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €950k.

On comparing similar companies in the French Hospitality industry with market capitalizations above €7.1b, we found that the median total CEO compensation was €4.9m. From this we gather that Sebastien Marie Bazin is paid around the median for CEOs in the industry. Furthermore, Sebastien Marie Bazin directly owns €27m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	€950k	€950k	17%
Other	€4.6m	€4.6m	83%
Total Compensation	€5.5m	€5.5m	100%

On an industry level, around 36% of total compensation represents salary and 64% is other remuneration. Accor pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Accor SA's Growth Numbers

Accor SA has seen its earnings per share (EPS) increase by 68% a year over the past three years. In the last year, its revenue is up 11%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Accor SA Been A Good Investment?

We think that the total shareholder return of 73%, over three years, would leave most Accor SA shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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.