Most Shareholders Will Probably Find That The Compensation For Laurent-Perrier S.A.'s (EPA:LPE) CEO Is Reasonable

Key Insights

• Laurent-Perrier's Annual General Meeting to take place on 10th of July
• Salary of €121.3k is part of CEO Alexandra de Nonancourt's total remuneration
• Total compensation is 82% below industry average
• Laurent-Perrier's EPS declined by 2.0% over the past three years while total shareholder return over the past three years was 0.8%

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Performance at Laurent-Perrier S.A. (EPA:LPE) has been rather uninspiring recently and shareholders may be wondering how CEO Alexandra de Nonancourt plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 10th of July. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Laurent-Perrier

Comparing Laurent-Perrier S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Laurent-Perrier S.A. has a market capitalization of €571m, and reported total annual CEO compensation of €176k for the year to March 2025. That's a fairly small increase of 7.8% over the previous year. In particular, the salary of €121.3k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the French Beverage industry with market capitalizations between €340m and €1.4b, we discovered that the median CEO total compensation of that group was €959k. In other words, Laurent-Perrier pays its CEO lower than the industry median.

Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. There isn't a significant difference between Laurent-Perrier 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 Laurent-Perrier S.A.'s Growth Numbers

Over the last three years, Laurent-Perrier S.A. has shrunk its earnings per share by 2.0% per year. In the last year, its revenue is down 5.8%.

Its a bit disappointing to see that the company has failed to grow its EPS. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Laurent-Perrier S.A. Been A Good Investment?

With a total shareholder return of 0.8% over three years, Laurent-Perrier S.A. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These are are some concerns that shareholders may want to address the board when they revisit their investment thesis.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Laurent-Perrier that investors should look into moving forward.

Switching gears from Laurent-Perrier, 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.