Here's Why Shareholders May Consider Paying Amundi S.A.'s (EPA:AMUN) CEO A Little More
Key Insights
- Amundi's Annual General Meeting to take place on 27th of May
- CEO Valerie Baudson's total compensation includes salary of €880.0k
- Total compensation is 50% below industry average
- Amundi's EPS grew by 6.4% over the past three years while total shareholder return over the past three years was 65%
Shareholders will be pleased by the robust performance of Amundi S.A. (EPA:AMUN) recently and this will be kept in mind in the upcoming AGM on 27th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
Check out our latest analysis for Amundi
Comparing Amundi S.A.'s CEO Compensation With The Industry
Our data indicates that Amundi S.A. has a market capitalization of €15b, and total annual CEO compensation was reported as €2.4m for the year to December 2024. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €880k.
On comparing similar companies in the French Capital Markets industry with market capitalizations above €7.1b, we found that the median total CEO compensation was €4.9m. That is to say, Valerie Baudson is paid under the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €880k | €880k | 36% |
| Other | €1.5m | €1.5m | 64% |
| Total Compensation | €2.4m | €2.4m | 100% |
Talking in terms of the industry, salary represented approximately 34% of total compensation out of all the companies we analyzed, while other remuneration made up 66% of the pie. Although there is a difference in how total compensation is set, Amundi more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Amundi S.A.'s Growth Numbers
Over the past three years, Amundi S.A. has seen its earnings per share (EPS) grow by 6.4% per year. In the last year, its revenue is up 12%.
We think the revenue growth is good. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Amundi S.A. Been A Good Investment?
We think that the total shareholder return of 65%, over three years, would leave most Amundi S.A. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Amundi 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.
Valuation is complex, but we're here to simplify it.
Discover if Amundi might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.