A Look At Gaztransport & Technigaz's (EPA:GTT) CEO Remuneration

Philippe Berterottière became the CEO of Gaztransport & Technigaz SA (EPA:GTT) in 2009, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Gaztransport & Technigaz.

Check out our latest analysis for Gaztransport & Technigaz

How Does Total Compensation For Philippe Berterottière Compare With Other Companies In The Industry?

At the time of writing, our data shows that Gaztransport & Technigaz SA has a market capitalization of €3.0b, and reported total annual CEO compensation of €890k for the year to December 2019. That's a notable increase of 30% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €400k.

In comparison with other companies in the industry with market capitalizations ranging from €1.6b to €5.2b, the reported median CEO total compensation was €2.2m. This suggests that Philippe Berterottière is paid below the industry median. What's more, Philippe Berterottière holds €7.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. It's interesting to note that Gaztransport & Technigaz allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Gaztransport & Technigaz SA's Growth

Over the past three years, Gaztransport & Technigaz SA has seen its earnings per share (EPS) grow by 19% per year. Its revenue is up 53% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Gaztransport & Technigaz SA Been A Good Investment?

Most shareholders would probably be pleased with Gaztransport & Technigaz SA for providing a total return of 86% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, Gaztransport & Technigaz SA is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Philippe's performance.

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. We identified 3 warning signs for Gaztransport & Technigaz (2 are significant!) that you should be aware of before investing here.

Important note: Gaztransport & Technigaz 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. 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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