How Does Vilmorin & Cie's (EPA:RIN) CEO Pay Compare With Company Performance?

Daniel P. Jacquemond became the CEO of Vilmorin & Cie SA (EPA:RIN) in 2017, 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 evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Vilmorin & Cie

Comparing Vilmorin & Cie SA's CEO Compensation With the industry

Our data indicates that Vilmorin & Cie SA has a market capitalization of €1.1b, and total annual CEO compensation was reported as €319k for the year to June 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is €234.7k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between €836m and €2.7b, we discovered that the median CEO total compensation of that group was €1.3m. In other words, Vilmorin & Cie pays its CEO lower than the industry median.

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Vilmorin & Cie is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 Vilmorin & Cie SA's Growth Numbers

Over the last three years, Vilmorin & Cie SA has shrunk its earnings per share by 8.7% per year. It achieved revenue growth of 3.2% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vilmorin & Cie SA Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Vilmorin & Cie SA investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Vilmorin & Cie pays its CEO lower than the norm for similar-sized companies belonging to the same industry. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. 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 can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Vilmorin & Cie that investors should think about before committing capital to this stock.

Switching gears from Vilmorin & Cie, 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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