How Does Bourse Direct's (EPA:BSD) CEO Salary Compare to Peers?

This article will reflect on the compensation paid to Catherine Nini who has served as CEO of Bourse Direct SA (EPA:BSD) since 2004. This analysis will also assess whether Bourse Direct pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Bourse Direct

Comparing Bourse Direct SA's CEO Compensation With the industry

Our data indicates that Bourse Direct SA has a market capitalization of €143m, and total annual CEO compensation was reported as €172k for the year to December 2019. That's a notable decrease of 12% on last year. Notably, the salary which is €100.0k, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between €82m and €330m had a median total CEO compensation of €449k. Accordingly, Bourse Direct pays its CEO under the industry median.

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. There isn't a significant difference between Bourse Direct and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Bourse Direct SA's Growth Numbers

Bourse Direct SA has seen its earnings per share (EPS) increase by 9.5% a year over the past three years. In the last year, its revenue is up 25%.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Bourse Direct SA Been A Good Investment?

Most shareholders would probably be pleased with Bourse Direct SA for providing a total return of 57% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As previously discussed, Catherine is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. On the other hand, shareholder returns have been have been very pleasing, over the last three years, and that should put a smile on the faces of investors. As a result of the juicy return to investors, CEO compensation may well be quite reasonable.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Bourse Direct (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Bourse Direct, 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. 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.
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