Pierre et Vacances SA's (EPA:VAC) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Pierre et Vacances to hold its Annual General Meeting on 13th of February
• Total pay for CEO Franck Gervais includes €650.0k salary
• Total compensation is similar to the industry average
• Pierre et Vacances' three-year loss to shareholders was 10% while its EPS grew by 124% over the past three years

In the past three years, shareholders of Pierre et Vacances SA (EPA:VAC) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 13th of February. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Pierre et Vacances

Comparing Pierre et Vacances SA's CEO Compensation With The Industry

At the time of writing, our data shows that Pierre et Vacances SA has a market capitalization of €706m, and reported total annual CEO compensation of €1.2m for the year to September 2024. Notably, that's an increase of 9.4% over the year before. In particular, the salary of €650.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the French Hospitality industry with market caps ranging from €386m to €1.5b, we found that the median CEO total compensation was €1.3m. So it looks like Pierre et Vacances compensates Franck Gervais in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€650k	€550k	54%
Other	€550k	€547k	46%
Total Compensation	€1.2m	€1.1m	100%

Talking in terms of the industry, salary represented approximately 35% of total compensation out of all the companies we analyzed, while other remuneration made up 65% of the pie. It's interesting to note that Pierre et Vacances pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Pierre et Vacances SA's Growth

Over the past three years, Pierre et Vacances SA has seen its earnings per share (EPS) grow by 124% per year. Its revenue is up 1.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Pierre et Vacances SA Been A Good Investment?

Since shareholders would have lost about 10% over three years, some Pierre et Vacances SA investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Pierre et Vacances we think you should know about.

Switching gears from Pierre et Vacances, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.