La Française des Jeux Société anonyme's (EPA:FDJ) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• La Française des Jeux Société anonyme to hold its Annual General Meeting on 25th of April
• CEO Stephane Pallez's total compensation includes salary of €320.0k
• Total compensation is 72% below industry average
• Over the past three years, La Française des Jeux Société anonyme's EPS grew by 26% and over the past three years, the total loss to shareholders 8.1%

Performance at La Française des Jeux Société anonyme (EPA:FDJ) has been rather uninspiring recently and shareholders may be wondering how CEO Stephane Pallez plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 25th of April. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for La Française des Jeux Société anonyme

How Does Total Compensation For Stephane Pallez Compare With Other Companies In The Industry?

At the time of writing, our data shows that La Française des Jeux Société anonyme has a market capitalization of €6.7b, and reported total annual CEO compensation of €1.0m for the year to December 2023. That's just a smallish increase of 5.4% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €320k.

For comparison, other companies in the French Hospitality industry with market capitalizations ranging between €3.8b and €11b had a median total CEO compensation of €3.6m. That is to say, Stephane Pallez is paid under the industry median. Furthermore, Stephane Pallez directly owns €57k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	€320k	€320k	32%
Other	€684k	€633k	68%
Total Compensation	€1.0m	€953k	100%

On an industry level, around 46% of total compensation represents salary and 54% is other remuneration. It's interesting to note that La Française des Jeux Société anonyme allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

La Française des Jeux Société anonyme's Growth

La Française des Jeux Société anonyme has seen its earnings per share (EPS) increase by 26% a year over the past three years. Its revenue is up 6.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 La Française des Jeux Société anonyme Been A Good Investment?

Given the total shareholder loss of 8.1% over three years, many shareholders in La Française des Jeux Société anonyme are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the strong EPS growth recently, the share price has not performed to expectations and it suggests that other factors might be driving it, apart from fundamentals. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for La Française des Jeux Société anonyme that you should be aware of before investing.

Important note: La Française des Jeux Société anonyme 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.