A Look At L.D.C's (EPA:LOUP) CEO Remuneration

Denis Lambert is the CEO of L.D.C. S.A. (EPA:LOUP), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for L.D.C.

View our latest analysis for L.D.C

How Does Total Compensation For Denis Lambert Compare With Other Companies In The Industry?

Our data indicates that L.D.C. S.A. has a market capitalization of €1.7b, and total annual CEO compensation was reported as €405k for the year to February 2020. That's a modest increase of 3.8% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at €166k.

For comparison, other companies in the same industry with market capitalizations ranging between €819m and €2.6b had a median total CEO compensation of €1.1m. That is to say, Denis Lambert is paid under the industry median.

Speaking on an industry level, nearly 41% of total compensation represents salary, while the remainder of 59% is other remuneration. Our data reveals that L.D.C allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

L.D.C. S.A.'s Growth

Over the past three years, L.D.C. S.A. has seen its earnings per share (EPS) grow by 1.6% per year. It achieved revenue growth of 3.5% over the last year.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has L.D.C. S.A. Been A Good Investment?

Given the total shareholder loss of 17% over three years, many shareholders in L.D.C. S.A. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Denis is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the EPS growth is lacking, just like the returns (over three years). We're not critical of the remuneration Denis receives, but it would be good to see improved returns to shareholders before compensation grows too much.

So you may want to check if insiders are buying L.D.C shares with their own money (free access).

Important note: L.D.C 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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