What We Learned About Laurent-Perrier's (EPA:LPE) CEO Compensation

Alexandra Pereyre de Nonancourt is the CEO of Laurent-Perrier S.A. (EPA:LPE), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

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 €462m, and reported total annual CEO compensation of €148k for the year to March 2020. That's a slightly lower by 5.7% over the previous year. Notably, the salary which is €116.6k, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between €163m and €651m had a median total CEO compensation of €675k. In other words, Laurent-Perrier pays its CEO lower than the industry median.

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Laurent-Perrier pays out 79% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Laurent-Perrier S.A.'s Growth

Over the last three years, Laurent-Perrier S.A. has not seen its earnings per share change much, though they have deteriorated slightly. In the last year, its revenue is down 14%.

A lack of EPS improvement is not good to see. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Laurent-Perrier S.A. Been A Good Investment?

With a three year total loss of 2.6% for the shareholders, Laurent-Perrier S.A. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Laurent-Perrier S.A. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

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've identified 1 warning sign for Laurent-Perrier that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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