Our View On La Française de l'Energie's (EPA:LFDE) CEO Pay

The CEO of La Française de l'Energie S.A. (EPA:LFDE) is Julien Moulin, and this article examines 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 La Française de l'Energie.

View our latest analysis for La Française de l'Energie

Comparing La Française de l'Energie S.A.'s CEO Compensation With the industry

At the time of writing, our data shows that La Française de l'Energie S.A. has a market capitalization of €99m, and reported total annual CEO compensation of €216k for the year to June 2020. That's a notable decrease of 12% on last year. Notably, the salary which is €210.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below €164m, reported a median total CEO compensation of €324k. In other words, La Française de l'Energie pays its CEO lower than the industry median.

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. Investors will find it interesting that La Française de l'Energie pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at La Française de l'Energie S.A.'s Growth Numbers

La Française de l'Energie S.A.'s earnings per share (EPS) grew 108% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has La Française de l'Energie S.A. Been A Good Investment?

With a total shareholder return of 13% over three years, La Française de l'Energie S.A. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

La Française de l'Energie pays its CEO a majority of compensation through a salary. As previously discussed, Julien is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. At the same time, EPS growth has been exceptional over the past three years. Shareholder returns, in comparison, have not been as impressive. We would wish for better returns (whether dividends or capital gains) but we do admire the solidEPS growth on show here. So it's fair to say Julien has done quite well despite modest compensation and shareholders might not be averse to a raise.

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. We did our research and spotted 2 warning signs for La Française de l'Energie that investors should look into moving forward.

Switching gears from La Française de l'Energie, 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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