Here's Why Euronext N.V.'s (EPA:ENX) CEO May Have Their Pay Bumped Up

Key Insights

• Euronext will host its Annual General Meeting on 15th of May
• CEO Stéphane Boujnah's total compensation includes salary of €1.02m
• The total compensation is 34% less than the average for the industry
• Over the past three years, Euronext's EPS grew by 3.0% and over the past three years, the total shareholder return was 10%

The decent performance at Euronext N.V. (EPA:ENX) recently will please most shareholders as they go into the AGM coming up on 15th 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.

See our latest analysis for Euronext

How Does Total Compensation For Stéphane Boujnah Compare With Other Companies In The Industry?

According to our data, Euronext N.V. has a market capitalization of €9.0b, and paid its CEO total annual compensation worth €4.3m over the year to December 2023. That's a notable increase of 9.7% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.0m.

For comparison, other companies in the French Capital Markets industry with market capitalizations above €7.4b, reported a median total CEO compensation of €6.6m. Accordingly, Euronext pays its CEO under the industry median. What's more, Stéphane Boujnah holds €6.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	€1.0m	€880k	24%
Other	€3.3m	€3.1m	76%
Total Compensation	€4.3m	€4.0m	100%

On an industry level, roughly 41% of total compensation represents salary and 59% is other remuneration. In Euronext's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Euronext N.V.'s Growth

Over the past three years, Euronext N.V. has seen its earnings per share (EPS) grow by 3.0% per year. Its revenue is up 3.9% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Euronext N.V. Been A Good Investment?

Euronext N.V. has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Euronext that investors should think about before committing capital to this stock.

Switching gears from Euronext, 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.