Here's Why Groupe Partouche SA's (EPA:PARP) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Groupe Partouche will host its Annual General Meeting on 20th of March
• Salary of €469.4k is part of CEO Fabrice Paire's total remuneration
• The overall pay is comparable to the industry average
• Groupe Partouche's EPS grew by 88% over the past three years while total shareholder return over the past three years was 8.9%

Under the guidance of CEO Fabrice Paire, Groupe Partouche SA (EPA:PARP) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of March. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Groupe Partouche

Comparing Groupe Partouche SA's CEO Compensation With The Industry

According to our data, Groupe Partouche SA has a market capitalization of €211m, and paid its CEO total annual compensation worth €482k over the year to October 2023. That's a notable increase of 12% on last year. In particular, the salary of €469.4k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the French Hospitality industry with market capitalizations ranging between €92m and €366m had a median total CEO compensation of €561k. From this we gather that Fabrice Paire is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. Groupe Partouche has gone down a largely traditional route, paying Fabrice Paire a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Groupe Partouche SA's Growth

Groupe Partouche SA's earnings per share (EPS) grew 88% per year over the last three years. It achieved revenue growth of 9.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Groupe Partouche SA Been A Good Investment?

Groupe Partouche SA has not done too badly by shareholders, with a total return of 8.9%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Fabrice receives almost all of their compensation through a salary. 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.

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 Groupe Partouche that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.