Sodexo S.A.'s (EPA:SW) CEO Looks Due For A Compensation Raise

Key Insights

• Sodexo's Annual General Meeting to take place on 17th of December
• Total pay for CEO Sophie Bellon includes €900.0k salary
• The overall pay is 34% below the industry average
• Sodexo's EPS grew by 74% over the past three years while total shareholder return over the past three years was 70%

The solid performance at Sodexo S.A. (EPA:SW) has been impressive and shareholders will probably be pleased to know that CEO Sophie Bellon has delivered. At the upcoming AGM on 17th of December, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Sodexo

Comparing Sodexo S.A.'s CEO Compensation With The Industry

According to our data, Sodexo S.A. has a market capitalization of €12b, and paid its CEO total annual compensation worth €3.3m over the year to August 2024. We note that's a decrease of 8.9% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €900k.

On comparing similar companies in the French Hospitality industry with market capitalizations above €7.6b, we found that the median total CEO compensation was €5.1m. This suggests that Sophie Bellon is paid below the industry median. Moreover, Sophie Bellon also holds €637k worth of Sodexo stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€900k	€900k	27%
Other	€2.4m	€2.8m	73%
Total Compensation	€3.3m	€3.7m	100%

Speaking on an industry level, nearly 35% of total compensation represents salary, while the remainder of 65% is other remuneration. Sodexo 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 Sodexo S.A.'s Growth Numbers

Sodexo S.A. has seen its earnings per share (EPS) increase by 74% a year over the past three years. In the last year, its revenue is up 5.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Sodexo S.A. Been A Good Investment?

Most shareholders would probably be pleased with Sodexo S.A. for providing a total return of 70% over three years. 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.

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 2 warning signs for Sodexo that investors should think about before committing capital to this stock.

Important note: Sodexo 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.